What is the difference between a command economy and a traditional economy?

1 answer:

8 0

A traditional economy is an economy wherein the people primarily subsists on growing their own food and produce. Usually, just about the right amount is produced and if there is any excess, it is given to the local lords. Also, bartering is the main practice of trading in a traditional economy. In a command economy, it is a dictator who will dictate who should make what and how much of a certain product should be made. The government will also decide at what price the people will price the products.

You might be interested in

Primary market explain how the treasury uses the primary market to obtain adequate funding

Contact [7]

Each week, the Treasury holds an auction to issue T-Bills. When the auction opens, investors are able to place bids on the bills. The Treasury is then able to select the highest bids in order to obtain adequate funding.

6 0

3 years ago

Which part of real GDP fluctuates most over the course of the business cycle?

ozzi

Answer:

c. investment expenditures

Explanation:

The reason for this is that during business cycles investors gain trust in the economy during a boom and invest a lot and during a recession they lose trust in the economy and decrease their investment by a lot, where as a lot of consumption like food, medicine, petrol etc remains mostly unaffected by changes in business cycle. Also government spending does not fluctuate a lot during the course of a business cycle because government spending is either long term like development projects.

6 0

3 years ago

Which is the branch of the US Treasury Department that collects taxes?

romanna [79]

The answer to your question is IRS

6 0

3 years ago

Jay-cee corporation had 20,000 shares of $4 par value common stock outstanding on january 1. on january 20, the company purchase

Tatiana [17]

19000 x 5 = $95,000 total to common

3 0

3 years ago

Assume that on November 1, 2019, a 3-month rent payment for $8,000 per month (for a total of $24,000) was made with respect to a

ziro4ka [17]

Answer:

Rent Expense Dr.$16,000

Bank Dr.$48,000

Prepaid Rent Cr.$64,000

Explanation:

The company entered into lease on 1st November 2019 with rent of $8,000 per month. the company on 1st November 2019 recorded prepaid rent as follows; which is wrong

Prepaid Rent Dr. $72,000

Bank Cr. $72,000

This is wrong entry as prepaid rent was overstated by ($72,000-$24,000 ) $48,000 and same like bank was understated by $48,000

The correct entry should have been like this as on 1st November 2019;

Prepaid Rent Dr. $24,000

Bank Cr. $ 24,000

By 31st December 2019, two months rent have already accrued so prepaid rent should be credited by (8000*2+48,000 for additional amount recorded)

So the rectifying entry is; as on 31st December 2019

Rent Expense Dr.$16,000

Bank Dr.$48,000

Prepaid Rent Cr.$64,000

7 0

3 years ago