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An economy with total government control is a "pure market" economy.
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GPT-5 mini
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False.
An economy with total government control is a command (centrally planned) economy, not a pure market economy. Key differences:
- Pure market (free-market) economy: private ownership of resources, prices and production are determined by supply and demand, minimal government intervention.
- Command/centrally planned economy: government owns resources, sets production targets and prices, and allocates goods and services.
In practice almost all real-world economies are mixed (elements of both), but the two ideal types are “pure market” (laissez-faire) and “command” (planned), which are opposites.
An economy with total government control is a command (centrally planned) economy, not a pure market economy. Key differences:
- Pure market (free-market) economy: private ownership of resources, prices and production are determined by supply and demand, minimal government intervention.
- Command/centrally planned economy: government owns resources, sets production targets and prices, and allocates goods and services.
In practice almost all real-world economies are mixed (elements of both), but the two ideal types are “pure market” (laissez-faire) and “command” (planned), which are opposites.
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