Explanation An economic system is an organization that determines the basic answers to the economic questions such as what to produce, how to produce, for whom to produce, and so on. Thus, the economic system is the organization such as the capital economy, command economy, mixed economy, and so on. Option (b): The economic system determines the answers for the central economic problems or questions such as what to produce, how to produce, and for whom to produce. Under the command economy, it is done by the central government. This means that there will be a strong central government that owns the economic resources and makes the decisions regarding the production and allocation of the lower units. This is the principle feature of the command-based economy. Therefore, option 'b' is correct. Option (a): The economic system in which the economic decisions are taken by the central government is known as the command-=based economy. The government identifies the needs of the economy and carries on the production decisions that are not profit motivated. Thus, under the command-based economy, the production decisions are taken by the central government and not by the profit maximizing firms...

The principle feature of a command-based economic system.

MICROECONOMICS FOR TODAY (LL)-W/MINDTAP

10th Edition

ISBN: 9781337739115

Author: Tucker

Publisher: CENGAGE L

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Question

Chapter 16, Problem 14SQ

To determine