WGU C235 - GLOBALIZATION Exam | Questions
and Answers | Verified Solutions | 2026 Edition |
Pass Guaranteed
Save
Terms in this set (26)
Traditional Economy Centered around a family or tribe and guided by
tradition
Found in hunt-gatherer and nomadic societies;
everyone consumes and produces the same
goods.
Relies on bartering
Members produce what they need with no surplus
Eventually, the economy evolves to some form of
currency
, Command Economy Collective or state ownership of capital—The state
owns capital resources such as money, property,
and other physical assets. There is no (or very little)
private ownership.
The state determines inputs and outputs—It has an
elaborate planning mechanism in place that
determines the level and proportions of inputs that
are to be devoted to producing goods and
services. Local planning authorities are handed
one-year, five-year, ten-year, or, in the case of
China, up to twenty-five-year plans. The local
authorities then implement these plans by meeting
with state-owned enterprises, where further plans
are developed specific to the business. Inputs are
allocated according to the plans, and output
targets are set.
Labor is allocated according to state plans—In a
command planning economy, there is no choice of
profession. When a child is in primary school, a
streaming system allocates people into designated
industries.
Private ownership is not possible—Under a
command planning system, an individual cannot
own shares, real estate, or any other form of
physical or nonphysical asset. The state allocates
people's residences.
Prices and paying for goods and services—Prices
are regulated entirely by the state with little regard
for the actual costs of production. Often, a
currency does not exist in a command planning
economy. When it does, its primary purpose is for
accounting. Instead of paying for goods and
services when you need to buy them, you are
allocated goods and services. This allocation
process is often called rationing.5
and Answers | Verified Solutions | 2026 Edition |
Pass Guaranteed
Save
Terms in this set (26)
Traditional Economy Centered around a family or tribe and guided by
tradition
Found in hunt-gatherer and nomadic societies;
everyone consumes and produces the same
goods.
Relies on bartering
Members produce what they need with no surplus
Eventually, the economy evolves to some form of
currency
, Command Economy Collective or state ownership of capital—The state
owns capital resources such as money, property,
and other physical assets. There is no (or very little)
private ownership.
The state determines inputs and outputs—It has an
elaborate planning mechanism in place that
determines the level and proportions of inputs that
are to be devoted to producing goods and
services. Local planning authorities are handed
one-year, five-year, ten-year, or, in the case of
China, up to twenty-five-year plans. The local
authorities then implement these plans by meeting
with state-owned enterprises, where further plans
are developed specific to the business. Inputs are
allocated according to the plans, and output
targets are set.
Labor is allocated according to state plans—In a
command planning economy, there is no choice of
profession. When a child is in primary school, a
streaming system allocates people into designated
industries.
Private ownership is not possible—Under a
command planning system, an individual cannot
own shares, real estate, or any other form of
physical or nonphysical asset. The state allocates
people's residences.
Prices and paying for goods and services—Prices
are regulated entirely by the state with little regard
for the actual costs of production. Often, a
currency does not exist in a command planning
economy. When it does, its primary purpose is for
accounting. Instead of paying for goods and
services when you need to buy them, you are
allocated goods and services. This allocation
process is often called rationing.5
