What type of economy is the opposite of a free market economy because the government makes all of the decisions about what goods, including produce and grains, are grown, manufactured, and distributed?
1. inelastic economy
2. traditional economy
3. command economy
4. black market economy
3. command economy
The type of economy that is the opposite of a free market economy, where the government makes all the decisions about what goods are produced, manufactured, and distributed, is a command economy. So, the correct answer is option 3: command economy.
The opposite of a free market economy, where the government has limited intervention and individuals make most of the economic decisions, is a command economy. In a command economy, the government has the authority to plan and control all aspects of the economy, including determining what goods are produced, how they are manufactured, and how they are distributed.
To determine the correct answer to this question, we need to understand the characteristics of each option and eliminate choices that do not fit the description. Let's evaluate each option:
1. Inelastic economy: This term refers to an economy where the demand for goods and services does not significantly change in response to price changes. It does not relate to government control over production and distribution, so we can eliminate this option.
2. Traditional economy: In a traditional economy, economic decisions are based on customs, traditions, and historical practices. This type of economy is not characterized by government control, but rather by customary rules and practices handed down through generations. Therefore, we can eliminate this option as well.
3. Command economy: This option describes an economic system where the government exercises complete control over what goods are produced, how they are manufactured, and how they are distributed. This aligns with the given description, making it the correct answer to the question.
4. Black market economy: A black market economy refers to illegal activities in which goods and services are exchanged without government oversight or regulation. It is the opposite of a legal market economy but does not describe a system where the government controls the entire economy. Therefore, we can eliminate this option as well.
Based on the evaluation above, the correct answer is option 3: command economy.