ECONOMICS
OPPORTUNITY COST
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Economy where industry is publicly owned & there is a central authority (government) making production & consumption decisions.
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Economy where decisions of individual producers & consumers determine what / how / for whom to produce (no government).
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Economic system where both the state & private sector direct the economy.
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System where traditions, customs, & beliefs shape the goods & services society creates.
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Detailed explanation-1: -What is a Command Economy? Command economy is a system where the government decides goods production, process, quantity, and price in a country. In this system, the government also manages income and investments. A communist nation like the former Soviet Union, Cuba, and North Korea work according to this system.
Detailed explanation-2: -A command economy, also known as a planned economy, is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare. Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.
Detailed explanation-3: -Monopoly markets is a salient feature of command markets, government adopt this system to cater for its needs and meet national economy goals. Command market also features governments of states playing principal role in planning and regulating goods and services produced in markets and how much they are sold.
Detailed explanation-4: -Market economies utilize private ownership as the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production and set prices and production schedules.
Detailed explanation-5: -Belarus. Cuba. Iran. Libya. North Korea. Russia.