A command economy is an economic system in which the government, or the central planner, determines what goods and services should be produced, the supply that should be produced, and the price of goods and services.
Who decides what goods and services will be produced in Cuba and North Korea?
The government decides what methods of production will be used and how much workers will be paid. Some necessities like health care and education are provided for free, as long as the state determines that you need them. Currently, North Korea and Cuba have command economies.
How is the government involved in the economy?
The government makes the basic economic decisions such as which goods and services to produce, prices, and wage rates. An economy in which changes in prices and consumer demand guide what and how goods and services will be produced, distributed, and consumed
Who decides what should be produced in a traditional economy?
The primary group for whom goods and services are produced in a traditional economy is the tribe or family group. In a command economy, the central government decides what goods and services will be produced, what wages will be paid to workers, what jobs the workers do, as well as the prices of goods. Click to see full answer
Which is the primary role of an economic system?
Economic freedom is most limited in a market economy. Competition is a key factor in all the economies. Central authority is strongest in a command economy. The profit motive drives all businesses in a traditional economy. Q. Which of the following best describes the primary role of an economic system?
What makes a country a type of economy?
The key factor in determining the type of economy a country has is the….. interaction of the public and private sectors. amount of taxes generated. the availability of resources and demand.
