Question

What type of economy does each statement describe?

Select C for Command economy.
Select M for Market economy.
Select T for Traditional economy.

Change is slow.

Consumer demand influences business decisions.

Economic growth is not a top priority.

Most business decisions are made by the government.

People choose their jobs.

Resources are government-owned.

Salaries are negotiated between employees and employers.

The government decides which jobs people have.

Answer 1

Traditional.

Market.

Traditional.

Command.

Market.

Command.

Market.

Command.

Answer 2

The correct answers are:

- Traditional;

- Market;

- Traditional;

- Command;

- Market;

- Command;

- Market;

- Command;

The traditional type of economy is an economy that is not willing of change, it keeps the things safe and usually without any risks, in order to maintain what they already have, so the progress is pretty slow.

The market economy is the most dynamic one, and it is an economy with free markets, lots of risks, and lots of opportunities, thus it is the one that has the most rapid changes, be it upwards or downwards.

The command economy is typical for the socialist systems. It is an economy where pretty much everything is organized, planned, and enforced by the government, and it is an economy that is orientating towards self-sustaining.