Question

In a command economy, how is it determined what goods and services will be produced?

A) Businesses decide what to produce on the basis of market conditions.
B) Consumers decide through their behavior in the marketplace.
C) Central government planning decides what will be produced.
D) Supply and demand control production and price.Q

Answer 1

C) Central government planning decides what will be produced

Step-by-step explanation:

Answer 2

The answer is C. The products and services in a Command Economy are defined by the goverment, which already developed negative reputation because of too much control. This kind of economy is usually present in communist countries. One positive thing is the efficiency of production, the progress is fast because all the resources are used in large scale.