Question

The country whose government is more heavily involved in the economy through economic functions of government as opposed to political functions is:________

Answer 1

A country whose government is more heavily involved in the economy through economic functions of government as opposed to political functions is a command economy.

What is a command economy?

• A command economy is one in which the government is more heavily involved in the economy through economic functions.
• A planned economy (command economy) is a form of economic system in which investment, production, and capital goods allocation follow economy-wide economic and production plans. Economic planning in a planned economy might be centralized, decentralized, participative, or Soviet-style.
• A command economy, on the other hand, is organized by a centralized government that owns most, if not all, firms and directs all factors of production.
• Command economies can be seen in East Germany, North Korea, and the former Soviet Union.

Therefore, a country whose government is more heavily involved in the economy through economic functions of government as opposed to political functions is a command economy.

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