Command Economy Characteristics and Impacts

The video tutorial introduces command economies, a system where the government makes all economic decisions, as seen in communist countries. It traces the concept back to Karl Marx and outlines the characteristics of such economies, including government ownership of resources and lack of competition. The video examines historical examples like the Soviet Union and Cuba, highlighting their economic strategies and challenges. It also touches on aspects of command economies present in the USA, such as government regulation. Finally, it discusses the advantages and disadvantages of command economies, including efficiency and lack of consumer choice.

Who is credited with creating the concept of a command economy?

• Milton Friedman

• John Maynard Keynes

• Karl Marx

• Adam Smith

In a command economy, who primarily makes the economic decisions?

• The government

• Private businesses

• International organizations

• Individual consumers

Which of the following is a characteristic of a command economy?

• Private ownership of all businesses

• Government ownership of major industries

• Free market competition

• Decentralized decision-making

Which country was the first to implement a command economy?

• North Korea

• Soviet Union

• China

• Cuba

What major event in the early 1990s affected Cuba's economy?

• The fall of the Berlin Wall

• The Bay of Pigs Invasion

• The collapse of the Soviet Union

• The Cuban Missile Crisis

Which of the following countries is an example of a command economy?

• India

• Australia

• Brazil

• North Korea

What does it mean for a business to be nationalized?

• Owned by private individuals

• Controlled by international corporations

• Owned and controlled by the government

• Operated by non-profit organizations

Which of the following is NOT a characteristic of the United States' economy?

• Regulation of air pollution

• Complete government ownership of all businesses

• Subsidies to farmers

• Government control of one-third of the economy

What is one advantage of a command economy?

• Decentralized decision-making

• High consumer choice

• Quick implementation of planned projects

• Encouragement of new ideas

What is a disadvantage of a command economy?

• Rapid technological innovation

• Excessive consumer choice

• Difficulty in predicting economic outcomes

• High levels of unemployment