Question

In theory, which type of economic system should not experience market fluctuations?
A
mixed economy

B
market economy

C
command economy

D
all of the above

Answer 1

C. command economy

In a command economy, the government makes all decisions regarding the production and distribution of goods and services, which theoretically should minimize market fluctuations since prices and production levels are controlled centrally. However, it's important to note that in practice, command economies can still experience issues and inefficiencies that may lead to economic problems.