Understanding Command Economies

The video on Mr. Sin's channel discusses the concept of a command economy, where a central authority, typically the government, answers the three basic economic questions: what to produce, how to produce, and for whom to produce. The video highlights the advantages of a command economy, such as the ability to rapidly change economic directions and provide public services at low or no cost. However, it also points out significant disadvantages, including stifled innovation, lack of incentives, and inefficiency in meeting individual needs. The video concludes by emphasizing the importance of understanding both the advantages and disadvantages of a command economy.

Which of the following economic systems will be discussed in other videos by Mr. Sin?

• Traditional, Mixed, Market

• Capitalist, Socialist, Traditional

• Traditional, Mixed, Command

• Market, Command, Socialist

In a command economy, who typically answers the three basic economic questions?

• Consumers

• Market forces

• The central authority

• Individual businesses

Which country is mentioned as the closest example of a current-day command economy?

• China

• Russia

• Cuba

• North Korea

What is one of the main advantages of a command economy?

• Fast change in economic direction

• High levels of innovation

• Minimal government intervention

• High consumer satisfaction

How did the Soviet Union benefit from a command economy?

• It became a leading agricultural society

• It transitioned to an industrial society quickly

• It reduced government bureaucracy

• It increased individual business freedom

What is a significant disadvantage of a command economy?

• It has minimal public services

• It encourages innovation

• It meets individual needs effectively

• It stifles creativity

Why might people lose incentives in a command economy?

• Because the market is unpredictable

• Because they are always told what to do

• Because they have too much freedom

• Because there are too many choices

What is one of the challenges a command economy faces with day-to-day issues?

• It meets all individual wants and needs

• It handles them very efficiently

• It has a hard time grappling with them

• It requires minimal bureaucracy

What is required to manage a command economy effectively?

• High levels of individual freedom

• Market-driven decisions

• A large bureaucracy

• Minimal government intervention

What should you remember about a command economy?

• How the government works in this economy

• All of the above

• Its advantages and disadvantages

• How it answers the three basic economic questions