Final answer:
A centrally controlled and planned livelihood system is known as a command economy, where the government makes all major economic decisions. This system contrasts with market economies, where decisions are driven by individuals, and mixed economies, which incorporate elements of both command and market systems. The correct answer to this is a. Command economy.
Step-by-step explanation:
The question concerns identifying the type of economic system characterized by a centrally controlled and planned livelihood system.
A command economy is one where the government controls major aspects of economic production and distribution, which includes the allocation of resources, determination of what goods and services are produced, and how they are distributed. These decisions are not made by market forces but by central planning conducted by the government. In contrast, a market economy is driven by the decisions of individual producers and consumers. Mixed economies incorporate elements from both command and market economies. Finally, a traditional economy is based on customs, culture, and historical roles, often relying on subsistence farming or hunting and gathering.
The prevalence and characteristics of these economic systems can vary greatly across the globe and over time. The Soviet Union exemplified a command economy from its establishment in 1917 until its dissolution in 1991, when it transitioned towards a more market-based system.
China also represented a command economy when it underwent the 'Great Leap Forward' starting in 1958. Although this move was aimed at achieving greater equity, the loss of efficiency led to disastrous consequences. Since then, China has implemented market-oriented reforms to balance the tradeoffs between equity and efficiency, reflecting a shift towards a mixed economy.