Who makes the decisions in a command economy quizlet?
Government planners, not private individuals, make the economic decisions in a command economy. The government decides what goods and services are produced, how they are produced, and how and to whom they are distributed. You just studied 19 terms!
How are decisions made in command economy?
In a command economy, production is decided by government agencies, who decide the most socially efficient goods to produce. Government agencies may also set prices or give consumers rations directly.
How are economic decisions made in a command economy quizlet?
How are economic decisions made in a command economy? The government decides what goods and services will be produced, how they will be produced, and how they will be distributed.
What is meant by command economy quizlet?
command economy- An economic system in which the government controls a country's economy. market economy- an economy that relies chiefly on market forces to allocate goods and resources and to determine prices.
What is the role of government in a command economy?
In a command economy, the government (or some other central authority) controls and steers major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.
What is a command economy in economics?
command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.
Who gets to make the economic decisions under capitalism?
The economy is run by individuals (or corporations) who own and operate companies and make decisions as to the use of resources.
How does a command economy work quizlet?
An economywhere supply and price are regulated by the government rather than market forces. Government planners decide which goods and services are produced and how they are distributed. The former Soviet Union was an example of a command economy. Also called a centrally planned economy.
What describes a command economy?
command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.
Who controls decisions about economic production and distribution in a command economy quizlet?
A command economy is one where the government makes most economic decisions, such as what will be produced, how it will be produced, and for whom it is produced.
Which describes a command economy?
A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn't rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.
What are the main features of a command economy?
A command economy has a small number of typical elements: A central economic plan, government ownership of the means of production, and (supposed) social equality are essential features of a command economy.
How are production decisions made in a command economy quizlet?
How are economic decisions made in a command economy? The government decides what goods and services will be produced, how they will be produced, and how they will be distributed. What drives the choices of consumers and producers in a market economy?
Who controls the economy in communism?
Communism, also known as a command system, is an economic system where the government owns most of the factors of production and decides the allocation of resources and what products and services will be provided. The most important originators of communist doctrine were Karl Marx and Frederick Engels.
What does the government control in a command economy?
In a command economy, the government (or some other central authority) controls and steers major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.
Who controls the factors of production in a command economy and who controls the factors of production in a market economy?
In a Centrally planned economy, also known as a command economy, the central government controls the factors of production and answers the three basic economic questions for all of society.
What role does the government play in a command economy?
In a command economy, the government (or some other central authority) controls and steers major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.
Who or what manages the economy and determines production in a planned economy?
A command economy is an economic system in which the government, or the central planner, determines what goods and services should be produced, the supply that should be produced, and the price of goods and services.
What is command economy economics quizlet?
command economy- An economic system in which the government controls a country's economy. market economy- an economy that relies chiefly on market forces to allocate goods and resources and to determine prices.
What is command economic system?
A command economy is where a central government makes all economic decisions. Either the government or a collective owns the land and the means of production. It doesn't rely on the laws of supply and demand that operate in a market economy. A command economy also ignores the customs that guide a traditional economy.
Who controls the economy in capitalism?
individuals In a capitalist economy, property and businesses are owned and controlled by individuals. In a socialist economy, the state owns and manages the vital means of production. However, other differences also exist in the form of equity, efficiency, and employment.
Who makes economic decisions in a mixed economy?
In a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed.
What role do central planners take in a command economy?
Central planners set prices, control production levels, and limit or prohibit competition within the private sector. In a pure command economy, there is no private sector, as the central government owns or controls all business.
Who controls the factors of production?
In a simplified model of an economy, known as a circular flow diagram, households own the factors of production. They sell or lend these factors to firms, which produce goods and services that households buy.
What role does the government play in a command economy quizlet?
What is the role of the Government in a Command Economy? Government considers the resources and needs of the country and distribute resources according to their judgement.
What is controlled in a command economy?
command economy, economic system in which the means of production are publicly owned and economic activity is controlled by a central authority that assigns quantitative production goals and allots raw materials to productive enterprises.
What is the role of the government in a command economy?
In a command economy, the government (or some other central authority) controls and steers major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.
What type of government has a command economy?
A command economy is one in which a centralized government controls the means of production. This has both advantages and disadvantages when compared to a free-market economy, which is an economy where supply and demand dictate output and prices.
Does the government control the economy?
The federal government regulates and controls the economy through numerous laws affecting economic activity. These range from laws enforcing private property rights to laws promoting competition among businesses.
Who makes the decisions in a socialist economy?
Robin Hahnel and Michael Albert identify five different economic models within socialist economics: Public enterprise centrally planned economy in which all property is owned by the state and all key economic decisions are made centrally by the state, e.g. the former Soviet Union.