Which term describes a system in which the government determines the production and distribution of goods?
free economy
mixed economy
market economy
planned economy

The term that best describes an economy in which the government determines the production and distribution of goods is a:

planned economy

In a planned economy the investment and allocation of goods is determined by a production plan. This economic system can be centralize or decentralized. As opposed to a command economy that is characterized by a hierarchical administration. Also, a planned economy differs from a market economy in that companies do not have the liberty to decide on production, investment, cost and distribution. A free economy is characterized by having no government intervention. While a mixed economy lays has some government intervention but firms still have many liberties and is partially regulated by the market.

raliegh, north ! hope this