Question

“The government decides what will be produced and how much it will cost.”



What economy does this sound more like?

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Group of answer choices

Traditional Economy

Market Economy

Command Economy

Answer 1

Command Economy.

In a command economy (central planning), the government determines what goods are produced, how much is produced, and often sets prices. This contrasts with a market economy (decisions made by consumers and firms via markets) and a traditional economy (decisions based on customs and tradition).