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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Market
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Command
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Centrally Planned
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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 Bank of Korea and the Korea Development Institute periodically release major economic indicators and economic trends of the economy of South Korea.
Detailed explanation-4: -South Korea has a mixed economic system which includes a variety of private freedom, combined with centralized economic planning and government regulation.
Detailed explanation-5: -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.