5
QuizMultiple Choice

Comparing Economic Systems — Quiz

Question 5 • Economics (Full-Year)

Which phrase best describes the primary goal of a command economy?

Answer
A
to ensure that all involved in the economy are able to benefit
B
to provide everyone access to the same economic opportunities
C
to centralize economic planning and meet production goals
D
to make economic decisions guided by tradition and culture

Explanation

In a command economy, the government or a central authority makes the main decisions about what to produce and how resources are used. Its planning aims to meet production goals, so “to centralize economic planning and meet production goals” is the best description. Decisions guided mainly by tradition and culture describe a traditional economy.

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