Question

John is an employee at a car manufacturer. today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. john doesn't mind, because although his wages are low, he gets paid whether there is any work for him to do or not. john most likely lives in a ________ economy.

Answer 1

The correct answer for the blank space on the question is planned economy.

Planned economy refers to a form of economy that is commonly associated with communism. It is a type of economic system where the allocation of investments and production of goods are done according to economic plans. This is apparent from how John still receives his salary even though his workplace is no longer producing cars. It is different with market systems where demand drives the economy.