Economic systems answer three basic questions: what will be produced, how will it be produced, and how will the output society produces be distributed? There ...
A command economy is one where the government has a large or complete control of the economy (for example communist or socialist states such as North Korea or the former USSR). Market or mixed economies give power to both the government and individual firms and households.
A command economy is one in which all the power is with the government. In such a system, the government is the sole owner of factor resources, and decisions ...
A command economy (also called a planned economy or centrally planned economy) is one in which economic decisions are controlled by a central authority, usually the state (government). The state controls the society’s capital (means of production) and decides how resources should be allocated (including what should be produced, how prices ...
How does a market economy answer the basic questions of WHAT, HOW, and FOR WHOM to produce? There is freedom and decisions are made privately and there are vast choices. What are the advantages and disadvantages of a traditional economy? Advantage: Everyone has role to play and it will never change.
In a pure command economy, the basic economic questions are answered by the government, which owns the productive resources and handles distribution of ...
The government of a command economy owns all of the productive resources, whereas the government of a socialist economy owns just some. What is the key similarity between a command economy and socialism? The major economic decisions are made by government for the people, not by the people.
Question 1 · Q. · How does a traditional economy answer the basic questions of WHAT, HOW, and FOR WHOM to produce? · Customs, traditions, and the elders decide ...
In a centrally planned economy the central government makes all decisions about the production and consumption of goods and services. In a market economy ...