A young worker has started working at a factory. She was assigned this job by the government and can't choose to quit. Sometimes, the factory is forced to shift production from cars to trains or airplanes, depending on what the government decides should be made. This young worker is most likely part of which economic system? A. Command economy B. Traditional economy C. Mixed economy D. Market economy
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In a command economy, the government exerts significant control over the production and distribution of goods and services. This often results in a lack of individual choice, as seen in your scenario with the young worker who cannot quit her job and is directed by the government to shift production depending on their decisions. This centralized planning aims to meet the economy's needs according to the governing body’s vision. In practice, command economies often face challenges such as inefficiency and lack of innovation, as the bureaucratic nature can stifle creativity. For example, when governments prioritize certain industries over others, it may lead to surplus in some sectors and shortages in others, showcasing the struggle between supply and demand that a more market-driven approach would typically manage more effectively.