Which type of economic system has the highest level of government control?
(1 point)
• traditional economy
• market economy
• command economy
O mixed economy
• command 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, let's analyze the different economic systems mentioned:
1. Traditional economy: In a traditional economy, economic decisions are based on customs, traditions, and beliefs. The government's role in a traditional economy is generally minimal, with economic activities determined by the cultural practices of the community or society.
2. Market economy: In a market economy, economic decisions are primarily driven by the interactions of buyers and sellers in the marketplace. The government's role in a market economy is typically limited to maintaining law and order, protecting property rights, and ensuring fair competition.
3. Command economy: In a command economy, the government controls and directs economic activities. The government determines what goods and services are produced, the quantities, and the distribution. It often establishes central planning agencies and sets detailed directives and targets for production.
4. Mixed economy: A mixed economy is a blend of market and command economies. In a mixed economy, both government and private entities participate in economic activities. The level of government control can vary, with some sectors being highly regulated, while others operate under market principles.
Among these options, a command economy is known for its high level of government control. In such a system, economic decisions are made by a central authority or government, and they have significant control over all aspects of the economy, including directing production, setting prices, and allocating resources.
Therefore, the correct answer is a command economy.