Question

In which economic system does

the government own the means
of production and control the
distribution of goods and
services? (The government has
complete control over the
economy.)
A. Semi-Limited
B. Unlimited
C. Limited

Answer 1

Answer: c, The limited economic system is the system in which government owns all the means of production and control the distribution of all goods and services .

Explanation: In the limited type of economy, government owns all the goods and services and control the whole economy. the profit motive of private organisations is finished. it is the monopoly of government. this helps in public welfare and societal good.

hence, the limited economy lacks an element of free economy and leads to close door policy . this might impact the economy of one country through lack of foreign exchange.