ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Traditional economic system
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Command economic system
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Mixed economic system
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Market economic system
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Detailed explanation-1: -The economy of North Korea is a centrally planned economy, following Juche, where the role of market allocation schemes is limited, although increasing. As of 2022, North Korea continues its basic adherence to a centralized command economy.
Detailed explanation-2: -North Korea has a command economy in which the central government directs the economy regarding the production and distribution of goods.
Detailed explanation-3: -The Constitution of South Korea stipulates that “the right of property of all citizens shall be guaranteed.” In other words, South Korea is based on a market economy, and thus it allows individuals and businesses to freely conduct economic activities and guarantees their profits and properties.
Detailed explanation-4: -Understanding Command Economy. Cuba, North Korea, and the former Soviet Union all have command economies. China maintained a command economy until 1978 when it began its transition to a mixed economy that blends communist and capitalist elements. 1 Its current system has been described as a socialist market economy.
Detailed explanation-5: -North Korea is a command economy because the government controls every aspect of the nation’s economy, including wages and prices. The state controls all production in the country and sets priorities for what goods a factory can and will produce. There is no sign of a market economy in North Korea.