What economic system is characterized by the government making decisions about production and pricing of goods?

The economic system characterized by the government making decisions about production and pricing of goods is known as a command market, often referred to as a planned economy. In this system, the government exerts a significant level of control over the economy, determining what goods and services will be produced, the methods of production, and their prices. This approach is aimed at achieving specific societal goals and can often lead to ensuring that basic needs are met, but it may also limit individual choice in the marketplace.

In contrast, a free market economy relies on supply and demand to determine production and pricing without government intervention, allowing for more personal choice and potential innovation. A traditional market economy focuses on using established customs and practices to guide production and distribution based on historical roles within a community, rather than government commands. A mixed economy incorporates elements of both government control and free market principles, allowing for some level of private enterprise alongside governmental regulations and interventions.