Question

Henry lives in a country where the government gives many incentives to produce military goods and few incentives to produce consumer goods. Henry knows a more efficient way to finish his task at work and feels like sharing it with his boss. However, he has no incentive to share it. Which type of economy does Henry most likely live in? command economy market economy mixed economy traditional economy

Answer 1

Most likely command economy,
our economy is a market economy.

Answer 2

Answer:

Command economy

Explanation:

A command economy exists in countries where production is controlled by the state, so that there is no private initiative, everything is controlled by the government. In this type of economy, there is a shortage of manufacturing production and much of the industrial production is in the arms industry. Thus, in a command economy there is no incentive for innovative ideas because there is no private production system, everything is centralized by the state. An example of command economy is North Korea.