Which type of economic system has the highest level of government control?
(1 point)
Responses
traditional economy
traditional economy
market economy
market economy
command economy
command economy
mixed economy
command economy
No.Its mixed economy
The type of economic system that has the highest level of government control is the command economy.
The type of economic system that has the highest level of government control is a command economy. To arrive at this answer, we need to understand the characteristics of each economic system and determine which one involves the most government intervention.
1. Traditional economy: In a traditional economy, economic decisions are based on customs and traditions passed down through generations. The government's influence in this type of economic system is minimal, and decisions are made by the community or tribe based on their customs. Therefore, it does not involve a high level of government control.
2. Market economy: In a market economy, also known as a free-market economy, economic decisions are determined by the forces of supply and demand. There is minimal government intervention, and instead, businesses and individuals make decisions based on their self-interest. As a result, the government's control over the economy is limited.
3. Command economy: In a command economy, also known as a centrally planned economy, the government has absolute control over economic decisions. The government determines what goods and services are produced, how they are produced, and who receives them. This type of economic system is characterized by state ownership of resources and production facilities. The government directs all economic activities and allocates resources according to its own plans. Therefore, a command economy has the highest level of government control compared to other economic systems.
4. Mixed economy: A mixed economy is a blend of market and command economies. It combines elements of both free-market principles and government intervention. In a mixed economy, the government plays a role in regulating and overseeing certain industries and activities, but it also allows for private enterprise and market forces to operate. The level of government control in a mixed economy varies, depending on the specific country and its policies.
Based on these explanations, the command economy has the highest level of government control among the given options.