Question

question 12

what kind of economy is entirely controlled by the government, allowing minimal or no private ownership?

planned economy
market economy
traditional economy
mixed economy

Explanation:

Analyze the question prompt

The question asks for the type of economy that is entirely controlled by the government, allowing minimal or no private ownership. This relates to the Business Environment and External Environment in which organizations operate.

Define the economic systems

• Planned economy (or command economy): An economic system where the government makes all decisions regarding the production and distribution of goods and services. Private ownership is minimal or non-existent.
• Market economy: An economic system where decisions regarding investment, production, and distribution are guided by the price signals created by the forces of supply and demand, with significant private ownership.
• Traditional economy: An economic system based on customs, history, and time-honored beliefs.
• Mixed economy: An economic system blending elements of market economies with elements of planned economies, featuring both private enterprise and state intervention.

Identify the correct option

Since the question specifies "entirely controlled by the government, allowing minimal or no private ownership," this matches the definition of a planned economy.

Answer:

• Planned economy (Correct answer)
• Market economy
• Traditional economy
• Mixed economy