Mastering Command Economies

Questions and Answers

What is a command economy?

A command economy is when there is a central authority, usually the government, that answers all the economic questions and controls all aspects of the economy.

What are the three basic economic questions?

The three basic economic questions are: what to produce, how to produce, and for whom to produce.

What are some advantages of a command economy?

Some advantages of a command economy are: the ability to change directions quickly, the provision of public services at low or no cost, and the potential for rapid industrialization.

What are some disadvantages of a command economy?

Some disadvantages of a command economy are: stifled innovation and creativity, loss of individual incentives, difficulty in meeting the wants and needs of individuals, and the need for a large bureaucracy. Signup and view all the answers

Give an example of a country that had a command economy and experienced rapid industrialization.

The Soviet Union is an example of a country that had a command economy and experienced rapid industrialization. Signup and view all the answers

Match the following characteristics to their corresponding economy types:

Mixed Economy = Combination of command and market economies Traditional Economy = Economic decisions based on customs and beliefs Command Economy = Central authority answers all economic questions Market Economy = Individual businesses and individuals have a say in economic decisions Signup and view all the answers

Match the following countries to their corresponding economy types:

North Korea = Command Economy United States = Market Economy Sweden = Mixed Economy Tribal regions in Africa = Traditional Economy Signup and view all the answers

Match the following aspects to their corresponding economy types:

Command Economy = Stifles innovation and creativity Market Economy = Encourages innovation and creativity Mixed Economy = Balances government intervention and individual freedom Traditional Economy = Relies on established rituals, traditions, and practices Signup and view all the answers

Match the following economic systems to their ability to change direction quickly:

Command Economy = Can change directions quickly Market Economy = Change in direction depends on market dynamics Mixed Economy = Change in direction depends on both government decisions and market dynamics Traditional Economy = Resistant to quick changes Signup and view all the answers

Match the following consequences to their corresponding economy types:

Command Economy = Requires a huge bureaucracy Market Economy = Can lead to economic inequality Mixed Economy = May suffer from inefficiencies due to government intervention Traditional Economy = May struggle to adapt to new technologies or methods Signup and view all the answers