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Who makes economic decisions in the government?
A centrally planned economy, also known as a command economy, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products.
Does Cuba have a command economy?
The economy of Cuba is a mixed planned economy dominated by state-run enterprises. The government of Cuba owns and operates most industries and most of the labor force is employed by the state.
Who makes the decisions in a command economy quizlet?
Government planners, not private individuals, make the economic decisions in a command economy. The government decides what goods and services are produced, how they are produced, and how and to whom they are distributed. You just studied 19 terms!
Who makes the economic decisions in a traditional economy quizlet?
Terms in this set (15) An economic system in which the government controls a country’s economy. Economic decisions are made by individuals or the open market.
What is economic decision making?
Economic decision making, in this book, refers to the process of making business deci- sions involving money. All economic decisions of any consequence require the use of some sort of accounting information, often in the form of financial reports.
Who makes the economic decisions in Cuba?
government
The government in Cuba controls more than 90 percent of the country’s economy, rationing worker’s salaries in exchange for the free healthcare, education, and low cost transportation and housing.
Who makes the decisions what to produce in Cuba?
Thus, decision making is decentralized with individual economic agents, producers and consumers, making their own independent decisions. These individual decisions are based on information, which flows horizontally between market participants in a capitalist economy. Information is generally of three types.
Who makes the decisions in a command economy?
At the other end of the spectrum, in a Command Economy, government officials make most of the decisions in the economy about what to produce, how to produce it and who receives it.
Who makes the decisions in an economy?
Who Makes the Decisions? Economic systems can be categorized according to who makes most of the decisions in an economy. In a Market Economy, most of the decisions in the economy about what to produce, how to produce it and who receives it are made by individuals and firms. At the other end of the spectrum, in a Command Economy,
What is the difference between a centrally planned and command economy?
Related Terms A centrally planned economy is an economic system in which decisions are made by a single authority rather than many market participants. A command economy is a system where the government determines production, investment, prices and incomes.
What is the difference between a command economy and free market?
Whereas the motivation for profit drives most business decisions in a free market economy, it is a non-factor in a command economy. A command economy government, therefore, can tailor products and services to benefit the common good without regard to profits and losses.