Select the correct answer.
If you lived under an economic system in which the government controlled all aspects of production, which economic system would this be?
A. traditional economy
B. market economy
C. planned economy
D. mixed economy
Answer (2)
The economic system where the government controls all aspects of production is known as a planned economy. This system is characterized by centralized decision-making regarding production and distribution. It contrasts with market and mixed economies, where supply and demand play crucial roles. ;
The correct answer is C: a planned economy, where the government controls all aspects of production and decision-making. This type of economy contrasts with market and mixed economies, typically leading to centralized economic planning. In a planned economy, the government sets production levels and prices rather than being driven by consumer demand.
;
