12
RCMultiple Choice

Cumulative Exam — Cumulative exam

Question 12 • United States Government-FL-2106310 (2024-2025)

Which statement best describes a command economy?

Answer
A
Buyers and sellers work with the government to make economic decisions based on tradition and culture.
B
The government owns and controls some industries, while private individuals or groups own and control others.
C
Buyers and sellers are free to make, sell, and buy what they want with no government interference.
D
The government controls all aspects of the production, distribution, and price of goods and services.

Explanation

In a command economy, the government makes the main economic decisions, including what goods and services are produced, how they are distributed, and what they cost. This matches choice D, “The government controls all aspects of the production, distribution, and price of goods and services.” Choice B describes a mixed economy, where both the government and private owners control industries.

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