Question

Which of the following is true in a command economy?

Answer 1

Two statements that are true:

In a command economy all factors of production should be government owned or state owned.

It does not allow private entrepreneurship

Answer 2

A command economy is the one in which the market is dispensed with or has a secondary role in allocating resources. There are several planning models from which the consensus among economic factors arises through the socialization of the means of production in a decentralized environment and the active participation of producers and citizens (collective or community planning) to that organized by a central entity in which the entire economy of the region is coordinated (centralized planning).