In which economic system does the government have complete control over manufacturing and production? open economy market economy mixed economy planned economy

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Zamora

17 September, 20:00

In which economic system does the government have complete control over manufacturing and production? open economy market economy mixed economy planned economy

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Answers (2)

Know the Answer?

Cortez Burnett · Answer 1

Planned Economy

Explanation:

The economic system in which the government has complete control over manufacturing and production is a planned economy. In this system, the means of production, ie the machinery and equipment needed to produce, belongs to the government that decides the quantity and which goods will be produced. This through economic planning, as happened in the USSR, for example.

Madison Wilkerson · Answer 2

Planned economy which is also known as command economy system is the correct answer as in this type economic system the government has complete control over all manufacturing and production process.

Explanation:

In this type of economic system, the government has direct control on price, production and distribution due to which they manages the whole system of supply and demand of goods. The planned economy possesses some benefits as well.

In the planned economic system government can safeguard the interests of the consumer by controlling price and production capacity. Planned economy is opposite from the free market system in which the firms or manufactures in the market make all the decision about investment, price, production and distribution.