Question

In a command economy, decisions about which goods are produced are

based on:
A. what the local community has made for generations.
B. what the government decides is important for society.
C. what businesses believe will generate the most profits.
D. what goods are most likely to sell in international markets.

Answer 1

Answer: A command economy is a system where the government, rather than the free market, determines what goods should be produced, how much should be produced, and the price at which the goods are offered for sale.