Question

Government owns the factors of production

Government answers the question of who, what and how to produce
Government eliminates choice and competition


What type of economic system is described?
A) Capitalism
B) Command
C) Market
D) Mixed

Answer 1

B. A Command economic system.

~DjMia~

Answer 2

The type of economic system when government owns the factors of production, answers the question of who, what and how to produce, and eliminates choice and competition is called a command economy. It is the opposite of a market economy.