In which type of economy does the government decide whether houses or apartments will be built?

• A. Traditional economy
• B. Market economy
• C. Mixed economy
• D. Command economy

Answer: (D)

Verified step by step guidance

1. Understand the key types of economies: Traditional, Market, Mixed, and Command economies, each with different decision-making processes regarding production and resource allocation.
2. Recognize that in a Traditional economy, decisions are based on customs and historical precedent, not centralized government planning.
3. Know that in a Market economy, decisions about what to produce are made by individual consumers and firms through supply and demand interactions, without direct government control.
4. Identify that a Mixed economy combines elements of both market forces and government intervention, but does not fully centralize decisions.
5. Realize that in a Command economy, the government centrally plans and controls economic activities, including deciding whether houses or apartments will be built, which matches the problem's description.