Question

Which statement best describes a command economy? Government intervention in economic choices is strictly forbidden. The government determines economic choices and makes most decisions. The decisions made by producers and consumers drive all economic choices. Producers and consumers make some economic choices while the government makes others.

Answer 1

Answer: The Government determines economic choices and makes most decisions.

A command economy is a system where the wealth and resources of a state are mainly determined by the Government. Production and consumption of goods and services—including what and how much is produced and consumed is controlled by the Government. A command economy is the opposite of a free market.

Answer 2

The Government determines economic choices and makes most decisions.

Command economy is a system where the wealth and resources of a state is mainly determined by the Government. Production and consumption of goods and services—including what and how much is produced and consumed is controlled by the Government. A command economy is the opposite of the free market.