A system where the basic economic questions are determined, at least to some degree, through centralized 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 where the government or a centralized authority makes decisions on what goods and services are produced, how much they are produced and distributed, and what prices they are sold at. The government owns most of the resources and means of production, and individuals have little to no say in the economic decisions made. This is in contrast to a capitalist or free-market economy, where individuals and businesses make these decisions based on supply and demand. A mixed economy combines elements of both command and capitalist economies. A laissez-faire economy is one where individuals and businesses have complete freedom to make economic decisions with little government intervention. A communal economy involves the sharing of resources and decision-making among members of a community.

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