Question

Question 1
5 pts
(05.02 LC)
In which type of economy does the government decide all or most economic
questions? (5 points)
Command
Market
O Mixed
O Traditional

Answer 1

Answer:

Command

Explanation:

In the command economic model, the government determines the level of economic productions in the country. It decides what will be produced, its quantity, and the cost price.  A central authority or the government owns all the factors of production.

The command economy is also the planned economy. The government plans and produces all goods and services. The private sector is not present in the command economy.