ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Traditional
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Command
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Market
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Mixed
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Detailed explanation-1: -Traditional Economy Conclusion The activities are typically centralized around agriculture or hunting. Common characteristics include family centred, use hunting, fishing or farming to get the required goods, and the economy doesn’t trade.
Detailed explanation-2: -In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
Detailed explanation-3: -Centrally planned economy: (aka command economy) Government decides everything. Example: communism. Mixed economy: Market-based economy where government plays a limited role.
Detailed explanation-4: -Belarus. Cuba. Iran. Libya. North Korea. Russia.