Question

If you lived under an economic system in which the government controlled all aspects of production, which economic system would this be?

traditional economy


market economy


planned economy


mixed economy

Answer 1

Planned Economy. Think of communism and how the government controlled everything.

Answer 2

The correct answer is “planned economy”

A planned economy is an economic system in which the government controls and regulates production, distribution, prices etc. The aim of this economy is to efficiently control the prices and the resources. It is the antithesis of a free market economy. China and the Soviet Union are examples of this economy.