Question

Characteristics of what type of economic system are being described below?

Answer 1

Answer:

Command

Explanation:

These are characteristics of a command economy. In a command economy, the government controls the markets. This means that supply and demand are not the drivers of the economy. Instead, trade is limited to what is produced by order of the government. Moreover, the factors of production (used to produce commodities) are owned by the government, which has full control over them.

Answer 2

Answer:    Command Economies

Explanation:  According to this description, it is a command economy that was characteristic, for example, of communism, where the government, the state, posses the means of production, and according to the decisions of the government and the political and economic program it conducts, it determines which good will be produced, how much it will be commodity exchange, under what conditions, the volume of production, etc.

In contrast, in the market economy, private entrepreneurs decide everything and they are the owners of the means of production.

In a traditional economy characteristic of rural areas, production takes place at the family level, or bringing together more landowners, where everyone has their own predetermined role and no risky investments, such as in a market economy.