Which economic system features government ownership of resources and central planning?

Which economic system features government ownership of resources and central planning?

• A. Mixed Economy
• B. Free Market
• C. Traditional Economy
• D. Command Economy

Answer: (D)

Government ownership of resources and central planning define a command economy. In this system, the state decides what to produce, how to produce it, and how goods and services are distributed, rather than relying on private owners and market prices. The government may own factories, land, and utilities and uses centralized plans to allocate resources toward national goals. This contrasts with a mixed economy, which blends public and private ownership with some planning; a free market, which emphasizes private property and market-driven decisions with little central planning; and a traditional economy, which follows customs and bartering within a community. Because government ownership and centralized planning are the hallmark features, this is the best fit.

Government ownership of resources and central planning define a command economy. In this system, the state decides what to produce, how to produce it, and how goods and services are distributed, rather than relying on private owners and market prices. The government may own factories, land, and utilities and uses centralized plans to allocate resources toward national goals. This contrasts with a mixed economy, which blends public and private ownership with some planning; a free market, which emphasizes private property and market-driven decisions with little central planning; and a traditional economy, which follows customs and bartering within a community. Because government ownership and centralized planning are the hallmark features, this is the best fit.