QAPolitology › Which nation has a command economy?

Which nation has a command economy?

A. Cuba

B. Norway

C. South Korea

D. United States of America


Answer: A. Cuba

In a command economy, a central government is in charge of making every economic decision in the country. The levels of production and prices of goods and services are authoritatively dictated by the government. With this, the laws of demand and supply are not relied upon unlike they are in a market economy. Most industries in a command economy are publicly owned. Some countries that practice command economy include Iran, Belarus, Cuba, North Korea, and Libya. In these countries, monopolies are very common and this is so because it is considered necessary in meeting the goals of the economy.

2 years ago