156093
AssignmentMultiple Choice

Applying Economics to World History

Question 156093 • FL-2109010-M/J World History A - Teacher Directed Resource

Which statement best compares traditional and command economies?

Answer
A
In a command economy, competition sets prices, but in a traditional economy, there is no competition.
B
In a traditional economy, all transactions are made with currency, but in a command economy, all transactions are made by barter.
C
In a command economy, the government sets prices and distributes goods, but in a traditional economy, goods are exchanged by barter.
D
In a traditional economy, individuals have little control over economic decisions, but in a command economy, individuals control all economic decisions.

Explanation

A command economy is centrally planned, so the government makes major decisions about production and may set prices and distribute goods. In a traditional economy, customs and long-standing practices guide economic activity, and people often exchange goods through barter. Therefore, choice C best compares the two; choice A incorrectly says competition sets prices in a command economy.

AI-written and checked against the verified answer.

Previous
Next