Which nation has a communist command economy?
o norway
o north korea
o south korea n
o the united states

The correct answer is North Korea.

Explanation:

Norway, South Korea and the United States have economies based in the Market interchange with some regulations and interventions of the State, and their government are based in the Democracy System, but South Korea bases its Economy in a Communist Command Economy.

The North Korean economy is led by the State Planning Committee, linked to the Korean Labor Party, that decides on: areas to invest, prices, and crops to be planted, industries to be installed and their respective location.

They were aligned with the Communist Bloc in Cold War times and received help and resources from China, Russia and other communist countries.

Communist command economy is one of the economic systems in the world. North Korea is a nation which has a communist command economy.

EXPLANATION  

The country's economic system based on the Command Economy rejects the existence of a free market because all of the economic aspects is centrally controlled by the government.

Further Definition of Command Economy

The command economy is an economic system where the government determines all aspects of the economy such as what goods must be produced, how much to produce, and the price at which goods are offered for sale. This system clearly rejects the existence of a free market. The command economy is a characteristic of the communist state.  

Besides North Korea, Cuba and the former Soviet Union also apply communist command system. On the other hand, China, which is a communist country, does not implement a command economy, although they have used the command economy for several decades before finally switching to a mixed economy.  

Here are some of the weaknesses of the Command Economy:

•Economic command in terms of providing incentives. The incentives are given to workers, planners, and managers in state-owned companies are very small.

•Rationally, Command Economic planning cannot determine the number of economic aspects such as the amount, proportion, and time of economic activity in all regions of the State without the existence of personal property or the operation of supply and demand.

Although the command economy has several weaknesses, adherents argue that their economic goal is to achieve equitable distribution and achieve social welfare rather than the profits of individuals who are glorified by capitalists.

LEARN MORE

If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:

•How did the fall of the Soviet Union affect Cuba’s economy?

KEYWORD: communist, north korea, economic strategy

Subject: Social Studies

Class: 7 - 9  

Subchapter: Command Economy

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