ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Economic freedom is most limited in a market economy.
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Competition is a key factor in all the economies.
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Central authority is strongest in a command economy.
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The profit motive drives all businesses in a traditional economy.
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Detailed explanation-1: -In a pure command economy, there is no private sector, as the central government owns or controls all business. In a command economy, government officials set national economic priorities, including how and when to generate economic growth, how to allocate resources, and how to distribute the output.
Detailed explanation-2: -Some examples of countries that have command economies are Cuba, North Korea and the former Soviet Union.
Detailed explanation-3: -In a command economy, the government or some other central authority controls all aspects of the economy.
Detailed explanation-4: -command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.