Question

The North Korean government controls every aspect of the economy. All decisions are made by the government as to what will be produced, for whom, and how it will be produced. North Korea's economic system can MOSTLY be classified as a ______________________.

)

Modern Economy


B)

Market Economy


C)

Command Economy


D)

Traditional Economy

Answer 1

OPTION C

Command Economy

Reason :

↪ A command economy is an economy where investment takes place according to the conditions .

↪ It is also called planned economy .

↪ The Korean Government suffered economic setbacks since 1950 s .

↪ And hence their economy collapsed many a times .

↪ Thus the country planned for a command economy so that their economy is highly planned and they have stability in GDP .

↪ Trade deficit and all other factors were the cause for such an economy to arise in the country .