Question

Which statement best describes an aspect of a command economy? Profit motivates individuals to set up private businesses. Tradition, religion, and customs heavily influence economic decisions. Supply and demand regulate the economy. Government directs and controls production of goods

Answer 1

Answer:

Government directs and controls the production of goods.

Explanation:

There are numerous different types of economic systems, and in pretty much all cases they are the direct product of the political system in a country. One of the economic types is the command economy. This economic system is typical for communist societies and while it has been widely distributed during the 20th century, nowadays it has lost of lot ground.

prThe command economic system is an economic system that is totally controlled by the government. The government is doing all of the planning, directs, and controls all of the production of goods, but also how much of the goods the people are allowed to have. The basic idea of this economic system is to be selfsustaining, but in practice, it has proven to be highly inefficient and disastrous. Good examples of how this economic system functions were the Soviet Union, Maoist China, and at present North Korea and Cuba.