ECONOMICS
ECONOMIC SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Capitalism is a market system
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Traditional economy is a command system
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Communism is a command system
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Socialism is a mixed system
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Detailed explanation-1: -Traditional systems focus on the basics of goods, services, and work, and they are influenced by traditions and beliefs. A centralized authority influences command systems, while a market system is under the control of forces of demand and supply. Lastly, mixed economies are a combination of command and market systems.
Detailed explanation-2: -A command economy is one where production and employment is largely dictated by a central authority, such as a national government. Often associated with communist regimes, a command economy focuses on macroeconomic objectives while individual economic freedom is often limited.
Detailed explanation-3: -In a command economy, governments own the factors of production and set prices and production schedules. In a market economy, prices are set by supply and demand. Most nations operate largely as a command or market economy but all include aspects of the other.
Detailed explanation-4: -Belarus. Cuba. Iran. Libya. North Korea. Russia.