Question

Read the scenario. A government agency decides the most efficient way for the country's three million workers to get to their jobs would be for them to drive cars. The agency determines that every worker could afford a small car that costs $5,000. The agency tells a factory to produce three million cars and sell them for $5,000 each. What kind of economy does this scenario describe? command developing market traditional

Answer 1

Answer:

The answer is command economy.

Explanation:

The example given in the question describes a command economy. In a command economy, the produced goods' price is not adjusted according to the supply and demand curve or by the companies that do the production. It is instead adjusted by the government, so is the rate of production, and what the product will be. This situation checks all those boxes. The government is deciding that the product will be cars, how many will be produced and what price they are going to be sold at.

So the answer is A, command economy.

I hope this answer helps.