Question

Https://.cthe government of semput (e.g. a fictitious country) plans the goods and services that semput produces, the quantity of goods produced, and the prices at which goods are sold. semput is a ______ economy. market mixed command theocratic pluralm/94215585/international-business-ch-2-flash-cards/

Answer 1

It seems that the government of Semput is operating a (C) command economy.

A command economy is a system where a country’s government has the final decision on what items would be sold in the market, at what price, and also the quantity of these items. This type of economic system is commonplace in communist or socialist countries. It differs from a market economy in which this type is governed by the supply and demand that the market generates.