PRC-3 · Chapter 9 · Question 3 of 45
In Country Z, a central planning committee decides exactly how many cars will be manufactured, what price they will be sold for, and what wages the factory workers will receive. What type of economic system is Country Z operating under?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Command Economy
Explanation
In a command (or planned) economy, the government or a central authority makes all major decisions regarding production, distribution, and pricing.
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