Which nation has a communist command economy?

Which nation has a communist command economy?

a. North Korea

b. Cuba

c. South Korea

d. United States

Answer: a. North Korea

A communist command economy is a type of economic system in which the state, via central planning, controls the principal levers of the economy which comprises production, distribution and pricing of commodities and services. The extent of private control of property and resources is restricted or absent.

North Korea is among the most unique nations on the globe, which still follows the communism command economy system. The rulers of North Korea, through the Workers’ Party of Korea wholly determine all significant macroeconomic policies and owns and control most resources for production, distribution, and exchange. The role of the private sector and the economy of demand and supply is severely limited and the state exercises monopolistic control over the economic activities of an economy through its planning.

The remaining options, Cuba, South Korea, and the United States do not elicit the characteristics of a communist command economy. The Cuban economy is a mixed economy with socialist influences, the South Korean economy is a capitalist market economy, while the US economy is a mixed economy dominated by the free market.