Communist nations, such as North Korea and Cuba, in which the government or other central authority makes decisions and determines how resources will be used have this type of economic system.

Question

Responses

capitalist economy
capitalist economy

mixed economy
mixed economy

direct economy
direct economy

command economy
command economy

Answer 1

You are correct, communist nations such as North Korea and Cuba have a command economy. In a command economy, the government or central authority decides and controls the production, distribution, and allocation of resources. The government typically owns and operates most industries and sets the prices of goods and services.