When comparing the three broad types of economic systems, it can be said that

Multiple Choice

• production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.

• the sole role of government in a command economy is to encourage vigorous free and fair competition between private producers.

• for a pure market economy to function efficiently, product supply must be restricted.

• in a command economy, state-owned enterprises have little incentive to control costs and be efficient.

• mixed economies were once uncommon throughout much of the world, although they are becoming more popular now.