What does a command economy usually result in?
A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale. It also determines investments and incomes.
What is the role of the government in a communist command economy?
An economy in which the government makes all the decisions. An economic system in which the government owns some or all of the factors of production. Communism. This is when the government owns all of the factors of production and there is no or little political freedom.
What roles does the government play in a command economy?
Production is coordinated by the government. Goods and services are rationed. What role does the government play in a command economy? There will be little reason to produce goods and services without guarantee that profits to buy resources or expand production or purchase goods and services for the owners to enjoy.
Who holds the real power in a market economy?
In a market economy, almost everything is owned by individuals and private businesses- not by the government. Natural and capital resources like equipment and buildings are not government-owned. The goods and services produced in the economy are privately owned.
What are the main features of a traditional economy?
A traditional economy is a system that relies on customs, history, and time-honored beliefs. Tradition guides economic decisions such as production and distribution. Societies with traditional economies depend on agriculture, fishing, hunting, gathering, or some combination of them. They use barter instead of money.
What is the role of the government in a command economy Brainly?
Answer:The government makes all economic decisions.
What role does the law of supply and demand play in a command economy Brainly?
The law of supply and demand functions the same way as in other economies, but the government sets the prices. The law of supply and demand does not apply because in a command economy, the government controls the market.
Which of the following is a common role of government in a mixed economy *?
Governments may seek to redistribute wealth by taxing the private sector, and using funds from taxes to promote social objectives. Trade protection, subsidies, targeted tax credits, fiscal stimulus, and public-private partnerships are common examples of government intervention in mixed economies.
What are the 3 roles of government in a mixed economy?
The Functions are: 1. Improving Efficiency of the Economic System 2. Controlling Externalities and Public Goods 3. Supplying Correct Information 4.
What motivates a traditional economy?
A traditional economy is one which doesn’t operate under a profit motive. Instead, it emphasizes the trading and bartering of products and services that enable participants to subsist in a specific region, community and/or culture.