How is production determined under a command economic system?
A.)Production is decided by individuals and businesses.
B.)Production is determined by the laws of supply and demand.
C.)Production is determined by customs and traditions.
D.)Production is based on the government's goals.
Answers
Answer:
D.)Production is based on the government's goals.
Explanation:
An economic system is the decision-making structure of a nation’s economy, characterized by the entities and policies that shape it.
An economic system may involve production, allocation of economic inputs, distribution of economic outputs, firms, and the government to answer the economic problem of resource allocation.
There are two general subtypes of economic systems: free market systems and planned systems.
A country may have some elements of both systems, and this type of economy is known as a mixed economy.
Key Terms
Planned system: A planned economy is an economic system in which decisions regarding production and investment are embodied in a plan formulated by a central authority, usually by a government agency.
Free market system: A free market is an economic system that allows supply and demand to regulate prices, wages, etc, rather than government.
Economic system: An economic system is the combination of the various agencies, entities (or even sectors as described by some authors) that provide the economic structure that defines the social community.