Question

An economy where the government sets prices, determines what and how many items will be produced, and assigns jobs to all citizens is called a __________ economy.

A.
command
B.
traditional
C.
barter
D.
market

Please select the best answer from the choices provided.

A
B
C
D

Answer 1

The correct answer is A. command economy. In a command economy, the government has control over the production, distribution, and allocation of goods and services. The government sets prices, determines what and how much will be produced, and assigns jobs to citizens. This type of economy is often associated with centrally planned or socialist systems.