An economy with permanent, universal price controls is in essence a:
A) market economy.
B) social economy.
C) free economy.
D) command economy.

Question

Quizplus · Accepted Answer

A command economy is characterized by centralized government control over the economy, including setting and enforcing price controls. Such an economy lacks the decentralized decision-making and price coordination mechanisms typically found in market economies, which allocate resources through supply and demand interactions. In contrast, a free economy is characterized by minimal government intervention, while a social economy seeks to balance economic goals with social welfare considerations.

An Economy with Permanent, Universal Price Controls Is in Essence