Which economic model is characterized by government control over the distribution of goods?

Ensure success on the Industrial Revolution Honors Test. Master key concepts with multiple-choice questions. Each query is equipped with hints and explanations to deepen understanding. Prepare thoroughly for your exam!

The economic model that is characterized by government control over the distribution of goods is a command economy. In a command economy, the government plays a central role in managing the economy, determining what goods are produced, how they are produced, and how they are distributed. This model prioritizes state control and planning over market forces, often with the goal of achieving specific economic outcomes or addressing social needs.

In contrast, feudalism and mercantilism describe systems where power and economic activity are not centrally planned by the government but are influenced by social hierarchies and trade regulations. Feudalism was marked by a decentralized structure based on land ownership and obligations, and mercantilism centered on regulating trade to increase national wealth but did not involve comprehensive government control over all goods. Capitalism is characterized by private ownership of production and market-driven distribution of goods, relying on supply and demand rather than government intervention.

Thus, a command economy is distinctly defined by its centralized control, which makes it the correct answer to the question regarding government control over the distribution of goods.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy