QUESTION IMAGE
Question
in which type of economy is the government most likely to set production quotas for certain goods?
a. a command economy
b. a market economy
c. a mixed economy
d. a traditional economy
In a command economy, the government has central planning and control over production, including setting production quotas. A market economy relies on supply and demand with minimal government intervention. A mixed economy has both market and government elements but less central control than a command economy. A traditional economy is based on customs and traditions, not government quotas. So the government is most likely to set production quotas in a command economy.
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A. a command economy