Question

What economy has major industres and businesses that are run by the government?

A)traditional economy
B)command economy
C)market economy
D)mixed economy

Answer 1

B) command economy

Step-by-step explanation:

A command economy is one that relies on a central planner to answer the three economic questions (what will we produce, how should we produce it, and who should get it). Most often this central planner is not some wise figure in the sky but an oligarchic government.

A market economy relies on the free market and laissez-faire (or "let alone") policies to essentially self-regulate.

Despite popular opinion, there are no purely command or purely market economies! All the countries in the world are mixed economies, though some (like China) are closer to a command economy, and some (like the US) are closer to a mixed economy.