Which type of economy features public ownership of the means of production and centralized planning?

Which type of economy features public ownership of the means of production and centralized planning?

• A. Market economy
• B. Command economy
• C. Traditional economy
• D. Mixed economy

Answer: (B)

Public ownership of the means of production with centralized planning defines a command economy. In this system, the government owns most or all resources and planners decide what to produce, how to allocate resources, and often set prices and outputs. This contrasts with a market economy, where private individuals and firms own resources and markets guide production through price signals; a traditional economy, which relies on customs and routines; and a mixed economy, which blends markets with some government intervention but not full centralized planning.

Public ownership of the means of production with centralized planning defines a command economy. In this system, the government owns most or all resources and planners decide what to produce, how to allocate resources, and often set prices and outputs. This contrasts with a market economy, where private individuals and firms own resources and markets guide production through price signals; a traditional economy, which relies on customs and routines; and a mixed economy, which blends markets with some government intervention but not full centralized planning.