Explain the role of government in a command market capitalist economy.

World Economic Systems Questions



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Explain the role of government in a command market capitalist economy.

In a command market capitalist economy, the role of government is to exercise control and regulation over various aspects of the economy. The government sets the production targets, determines the allocation of resources, and makes decisions regarding the distribution of goods and services. It also establishes and enforces laws and regulations to ensure fair competition, protect consumers, and maintain social stability. Additionally, the government may provide public goods and services, such as infrastructure, education, healthcare, and social welfare programs. Overall, the government plays a significant role in guiding and influencing the functioning of the economy in a command market capitalist system.