If an economy's factors of production were owned by the government sector and the coordinating activity was done by a government planning board, the economy would be called:
A) capitalism.
B) market capitalism.
C) command socialism.
D) mixed capitalism.

Question

Quizplus · Accepted Answer

This type of economy, where the government owns the factors of production and directs economic activity through a central planning board, is known as command socialism or a command economy. It is characterized by a lack of private property, central planning, and centralized decision-making. Capitalism (A and B) is characterized by private property and decentralized decision-making, while mixed capitalism (D) involves a mix of private and government ownership and decision-making.

If an Economy's Factors of Production Were Owned by the Government