Centrally Planned Economies

What is the main difference between free market economies and centrally planned economies?

• In free market economies, supply and demand determine production, while in centrally planned economies, government agencies decide.

• Centrally planned economies have no shortages, while free market economies do.

• Free market economies focus on heavy equipment, while centrally planned economies focus on consumer goods.

• Free market economies are less efficient than centrally planned economies.

Who answers the 3 basic economic questions in a centrally planned economy? 

• consumers

• government

• consumers & government

• none

The Country of North Korea has a dictator that makes all of the economic decisions. What type of economy is this?

• Traditional 

• Market 

• Command 

• Centrally Planned 

The Country of North Korea has a dictator that makes all of the economic decisions. What type of economy is this?

• Traditional

• Market

• Command

• Mixed

What is an economic system where only the government makes the economic decisions? 

• traditional economy

• free enterprise 

• mixed economy

• command economy

What is a centrally planned economy?

• An economy where the government makes all decisions about production and distribution

• An economy where businesses make all decisions about production and distribution

• An economy where consumers make all decisions about production and distribution

• An economy where decisions are made by a combination of government and private sector

Which of the following is a characteristic of a centrally planned economy?

• Private ownership of resources

• Market-driven prices

• Government control of resources

• Consumer choice in production

In a centrally planned economy, who typically owns the means of production?

• Private individuals

• Corporations

• The government

• Foreign investors

What is one advantage often claimed for centrally planned economies?

• High levels of consumer choice

• Efficient allocation of resources

• Ability to rapidly mobilize resources for large projects

• High levels of innovation

Which country is often cited as an example of a centrally planned economy?

• United States

• Germany

• Cuba

• Japan