3. In what type of economic system are the only taxes levied by the government ones used to pay for national defense, law enforcement, and a legal system designed to enforce contracts between private citizens.

a. Command system

b. Market system

c. Laissez-faire system

Question

3. In what type of economic system are the only taxes levied by the government ones used to pay for national defense, law enforcement, and a legal system designed to enforce contracts between private citizens.

a.     Command system

b.     Market system

c.     Laissez-faire system

BlackTom AI · Accepted Answer

A command economic system is characterized by centralized government control over major economic decisions and resources, so the state determines production, distribution, and often the scope of public spending.

1. Relevant knowledge points and concepts
- Command system: government makes most economic decisions, owns or controls key resources, and finances state activities through taxation or appropriation of output. Government priorities often include maintaining national security, public order, and enforcement of contracts under state authority.
- Market system: private individuals and firms make production and consumption decisions; governments may levy taxes to provide public goods and redistribution, but the system emphasizes private markets.
- Laissez-faire: minimal government intervention; the state's role is theoretically limited to protecting property rights, enforcing contracts, and defending the country, with few or no redistributive taxes.

2. Step-by-step reasoning
- The question specifies a system in which the only taxes levied by the government are to pay for national defense, law enforcement, and a legal system to enforce contracts.
- That description focuses on government provision and financing of core state functions and leaves economic outcomes tightly linked to government priorities rather than market-driven provision.
- Among the choices, the command system is the type where the state is the dominant economic actor and determines how revenue is raised and spent to fund its central roles.

3. Calculations/intermediate steps
- No numerical calculations are required; the solution rests on matching definitions to the description.

4. Why the correct answer is correct
- In a command system the government centrally manages economic activity and finances the apparatus needed to maintain and enforce that control (defense, law enforcement, legal frameworks). The question’s emphasis on taxes exclusively for those state functions aligns with the centralized priorities of a command economy.

5. Why other options are incorrect
- Market system (b): In a market economy taxes are typically used for a broader set of public goods, regulation, and redistribution alongside private market activity, not exclusively for defense and enforcement.
- Laissez-faire (c): This implies minimal or no taxation and intervention; it describes a limited state rather than the state-dominated fiscal pattern implied in the question.

6. Conclusion
The correct choice is a (Command system), which matches the provided answer.

3. In what type of economic system are the only taxes levied by the government ones used to pay for national defense, law enforcement, and a legal system designed to enforce contracts between private citizens. a. Command system b. Market system c. Laissez-faire system Single choice

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