Question

Compared to other economic systems, national income is more often evenly distributed in ___________.

• A. market economy
• B. command economy
• C. mixed economy
• D. all of the above

Answer 1

Answer: (B)

command economy

In a command economy, the government is in control of the pricing of goods and services. The government makes all decisions for finances in the country, such as an hourly rate of pay for workers, even the national income is more often evenly distributed. The government may even assign people the jobs. Since the hourly rate of pay is regulated, also tending to be just enough to survive, people will tend to try and break the rules, such as sell stuff on the black market to make more money.

The state has absolute power overall resources. The command economy has state-owned entities as well as privately-owned entities that are controlled by the state. People in power, such as politicians, give orders to buyers, sellers, and investors.