Western Governors University (WGU) BUS2070 D080 Managing in a Global Business Environment Practice Exam

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Which system is considered more sustainable due to controlling by a ruling class?

Market economy

Traditional economy

Command economy

The command economy is considered more sustainable in this context because it operates under centralized control, typically by a ruling class or government, which can make decisions aimed at long-term sustainability. In such a system, the government can implement policies that prioritize resource management, environmental protection, and social welfare without the fluctuations and instability often seen in market-driven economies.

In a command economy, the central authority has the ability to plan and direct the economy to align with sustainability objectives, such as reducing waste, managing natural resources efficiently, and addressing inequalities. This level of control can facilitate large-scale initiatives and ensure that all sectors of the economy are working toward a common goal, which is essential for sustainable development.

While other economic systems have their own advantages and drawbacks, they may not prioritize sustainability to the same extent. For instance, market economies primarily focus on supply and demand dynamics, which can lead to overconsumption and depletion of resources. Traditional economies often rely on historical practices that may not be adaptable to modern sustainability challenges. Democracies, while promoting freedom and participation, may struggle with cohesive long-term planning due to competing interests and political cycles. Thus, the command economy's centralized decision-making process is seen as favorable for achieving sustainable outcomes.

Democracy

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