ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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If my government is selling me bread for $5 a loaf, and I have no choice but to buy that type of bread, I live in a ____ economy.
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Traditional
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Command
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Market
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Mixed
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Explanation:
Detailed explanation-1: -In a command economy, governments own the factors of production and set prices and production schedules. In a market economy, prices are set by supply and demand. Most nations operate largely as a command or market economy but all include aspects of the other.
Detailed explanation-2: -In a Centrally Planned Economy, the three aspects of Ownership, Production, and Allocation are all controlled by the government or the central planning authority.
Detailed explanation-3: -The command economy is a component of a communist political system, while a free market system exists in capitalist societies.
Detailed explanation-4: -A market economy is governed by supply and demand.
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