Question

When compared to a mixed market economy a command economy typically has?

Answer 1

A command economy typically has:

• The demand and the supply controlled by the government.
• Prices that are artificially controlled.
• Resource allocation is determined by macroeconomic considerations, as opposed to those of small firms or business owners.

The most famous example was that of the former Soviet Union.

Answer 2

Correct answer:

A much smaller wealth gap OR More government control over production.

Explanation:

A command economy is a regularity where the government, rather than the free market, decide what assets should be manufactured, how enormously should be manufactured and the amount at which the assets are allowed for trade. It also fixes finances and interests. The command economy is a fundamental characteristic of a communist nation.