7
QuizMultiple Choice

Comparing Economic Systems — Quiz

Question 7 • Economics (Full-Year)

Which example suggests a command economy?

Answer
A
A shop owner increases production of a toy in high demand and short supply.
B
The government regulates a private refinery’s release of pollutants into the air.
C
The government instructs a factory to make 5,000 T-shirts.
D
A family trades vegetables from their garden for meat.

Explanation

In a command economy, the government directs what businesses produce and how much they produce. In choice C, the government tells a factory to make exactly 5,000 T-shirts, which is a direct production order. The other examples involve private decisions, government regulation, or barter rather than government control of production.

AI-written and checked against the verified answer.

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