Question

You work in a factory owned by the government. You get paid the same as the rest of the employees. The government tells you how much product to make each day and for how much money to sell it. What type of economy does this most likely represent?

A. Capitalist economy
B. Mixed economy
C. Socialist economy
D. Command economy

Answer 1

A scenario where the government sets production levels, prices, and worker wages in a factory is indicative of a command economy.

Step-by-step explanation:

When you work in a factory owned by the government, where your salary is the same as other employees, and the government dictates the production levels and selling prices, this scenario most likely represents a command economy. In contrast to a market economy where private individuals and firms make most economic decisions, a command economy is characterized by the government making all crucial economic decisions. This includes what goods and services will be produced, the methods of production, the prices for goods and services, and setting wages for workers. Countries like Cuba and North Korea are examples of nations with command economies.