Question
A ruthless dictator has recently taken over the small island of Tokoli’s government and is making changes to how the government and economy used to be. One of his first actions is to enforce a command economy so as to control all aspects of the country. As you watch this new dictator’s changes, which of these actions would be in line with this new command economy he is creating?
A He creates a new government body called the Ministry of Planning which will set wages, prices and production targets to reach each month.
B He opens up the economy to admit foreign companies to create business in the country and have access to the country’s resources.
C He deregulates government owned land and resources and allows the people to purchase them and create private businesses.
This question is taken from Econ 002 – Principles of Macroeconomics » Winter 2021 » Module 3 Quiz
