Under a command economy, governments own the factors of production such as land, capital, and resources, and government officials determine when, where, and how much is produced.
Who controls the resources factors of production in a command economy?
In a command economy, the government controls major aspects of economic production. The government decides the means of production and owns the industries that produce goods and services for the public.
Who owns the factors of production in a command economy quizlet?
Terms in this set (23) private individuals —not the government—own the factors of production.
Who owns and controls the factors of production in a free market economy?
In a free market economy, the factors of production are privately owned , and individuals decide how to answer the three economic questions.
Who owns factors of production quizlet?
government controls the factors of production and makes all decisions about their use.
What are the 7 factors of production?
= h [7]. In a similar vein, Factors of production include Land and other natural resources, Labour, Factory, Building, Machinery, Tools, Raw Materials and Enterprise [8].
What are the five factors of production?
The factors of production include land, labor, entrepreneurship, and capital .
Who answer the 3 basic economic questions and controls the factors of production in a command economy *?
| Term Definition | Command economy In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government. |
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What is a disadvantage of a command economy?
Command economy advantages include low levels of inequality and unemployment, and the common objective of replacing profit as the primary incentive of production. Command economy disadvantages include lack of competition and lack of efficiency .
What are the four factors of production?
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship . The first factor of production is land, but this includes any natural resource used to produce goods and services. This includes not just land, but anything that comes from the land.
Which is not a disadvantage in a market economy?
Market economies are also not without disadvantages: Disparity in wealth and mobility exists in market economies because wealth tends to generate wealth. In other words, it’s easier for wealthy individuals to become wealthier than it is for the poor to become wealthy.
Do all nations have the same economic needs?
Although all nations differ in the type and amount of economic resources they have, they all have the same economic needs . ... Communism refers to the private ownership of resources by individuals rather than by the government.
How do we make economic decisions?
- Identify your goal. ...
- Collect relevant information. ...
- Identify the alternatives and consequences. ...
- Review the evidence. ...
- Make your economic decision. ...
- Implement your decision. ...
- Review your decision.
What are the five factors of production quizlet?
The factors of production are: land, labor, capital, entrepreneurship, and knowledge .
What are the 4 factors of production quizlet?
Define the four factors of production— labour, capital, natural resources and entrepreneur .
What is the most important factor of production quizlet?
What is the most important factor of production? Why? Entrepreneurship is most important because it directs, organizes, and plans the production process.
