USA HISTORY

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WESTWARD EXPANSION INDUSTRIALIZATION URBANIZATION 1870 1900

SECOND INDUSTRIAL REVOLUTION

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Mary Ann runs a car dealership. She is required to sell only government-built cars. At the end of each month, she must give all the money the dealership earns to the government. The government then decides how much money Mary Ann and her workers should receive.In which type of economic system does Mary Ann work?
A
Traditional
B
Free Market
C
Mixed
D
Command
Explanation: 

Detailed explanation-1: -In a command economy, what goods and services are produced, how they are produced, and for whom they are produced are all questions answered by government planning. The government makes economic decisions for the good of society.

Detailed explanation-2: -Command economy relies on government officials to answer the three basic economic questions. Officials called – central planners/ decide on what will be produced and made. Individuals have little or no say in economic choices.

Detailed explanation-3: -Capitalism is often thought of as an economic system in which private actors own and control property in accord with their interests, and demand and supply freely set prices in markets in a way that can serve the best interests of society. The essential feature of capitalism is the motive to make a profit.

Detailed explanation-4: -In command economies, the government controls the factors of production and answers the 3 economic questions of what, how and for whom to produce for all of society.

There is 1 question to complete.
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