ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Command
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Mixed
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Market
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Traditional
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Detailed explanation-1: -North Korea has a command (centralized) economy. The state controls all means of production, and the government sets priorities and emphases in economic development.
Detailed explanation-2: -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-3: -The country of North Korea, officially known as the Democratic People’s Republic of Korea (DPRK), has an isolated and tightly controlled command economy. A command economy is a standard component of any communist country. In a command economy, the economy is centrally planned and coordinated by the government.
Detailed explanation-4: -Korea’s Open Market Capitalist Economy. South Korea has adopted the open market economy, and is thus negotiating with other countries to sign more FTAs, as well as allowing foreigners to invest in the country freely while encouraging domestic businesses to invest in foreign countries equally freely.