Question

Luke wishes to own a bakery but in his country the government has decided he will make only loaves of bread to sell to his village, charging 2.00 per loaf. The government will also take one third of his profits. What type of economic system does this describe? Question 1 options:

Traditional

Mixed Market

Market

Command

Answer 1

This would be a command economic system, because the government controls most of the business like what it produces and for whom. The government also gets compensated for this. This differs from other economic systems, because in some of the other systems, the business owners would be able to decide what to make and for whom.