Question

What economy does this sound more like?

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Group of answer choices

Traditional Economy

Market Economy

Command Economy

Flag question: Question 2
Question 250 pts
Look at the statement and answer the question below:

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



What economy does this sound more like?

image.png

Group of answer choices

Traditional Economy

Market Economy

Command Economy

Flag question: Question 3
Question 3100 pts
Explain your reasons for selecting your answers to number 1 and 2

Answer 1

Answers
- Question 1: Command Economy
- Question 2: Command Economy

Explanation / reasoning
- The statement “The government decides what will be produced and how much it will cost” describes central planning: the state makes production and pricing decisions. That is the defining feature of a command (or planned) economy.
- Why not Market Economy: in a market economy, producers and consumers (through supply and demand and price signals) decide what is produced and what prices are — not the government.
- Why not Traditional Economy: a traditional economy bases production on customs, traditions, and subsistence needs (often barter or small-scale production), not formal government decisions on production and price.

So the presence of government control over both output and prices points clearly to a command economy.