Question

Which characteristic is PRIMARILY associated with a command economy?

A) competition among suppliers in the market
B) free access to the marketplace for producers
C) centralized decision making about what will be produced
D) competition in the marketplace to provide consumer choice

Answer 1

The characteristic that is primarily associated with a command economy would be "C) centralized decision making about what will be produced," since this is oftentimes the opposite of a market economy.

Answer 2

The correct answer is C) centralized decision making about what will be produced

In a command economy, the governing body such as a government or a king or anyone similar makes decisions on what would be produced and in what amounts. There is no competition as it is known who makes what and how much of it is made and what the prices would be and there's no room for competition or liberal market policies.