Praxis II Citizenship

Category - Economics

The term ‘command economy’ is synonymous with which economic structure?
  1. Laissez-faire economy
  2. Socialist economy
  3. Capitalist economy
  4. Mixed economy
Explanation
Answer: B - A command economy is a socialist or planned economy, in which a centralized power maintains control over the factors of production. There may be collective ownership of land and capital, but business practices are always determined by a bureaucratic hierarchy-those in “command.”
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