Question

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

A. Traditional Economy
B. Market Economy
C. Planned Economy
D. Mixed Economy

Answer 1

C. Planned Economy is the answer. A planned economy is an economy in which production, investment, prices, and incomes are determined centrally by a government. It is not a traditional economy because in the question economy is not runed by tradition. A market economy is an economy ran by the people. A mixed economy is ran by the goverment, and the people. the question only says ran by the goverment, and not by the people thats why both of those answers are incorrect.