A system where the basic economic questions are determined, at least to some degree, through centralised government planning is referred to as a ____ economy.
A) Command
B) Capitalistic
C) Mixed
D) laissez-faire
E) communal

Question

Quizplus · Accepted Answer

A command economy is one in which the government makes most or all of the important economic decisions, such as what goods and services to produce, how they will be produced, and how they will be distributed. This type of economy is the opposite of a laissez-faire or market-based economy, where economic decisions are made by individuals, firms, and markets. In a command economy, the government sets prices, wages, and other important economic variables, and typically owns most or all of the major industries and means of production.

A System Where the Basic Economic Questions Are Determined, at Least