5
QuizMultiple Choice

Economic Concepts — Test

Question 5 • Economics

Which statement best describes a command economy?

Answer
A
Government intervention in economic choices is strictly forbidden.
B
Producers and consumers make some economic choices while the government makes others.
C
The government determines economic choices and makes most decisions.
D
The decisions made by producers and consumers drive all economic choices.

Explanation

In a command economy, the government directs economic activity and makes most decisions, such as what to produce and how resources are used. That matches choice C, “The government determines economic choices and makes most decisions.” Choice A describes a mixed economy, where the government and private individuals share decision-making.

AI-written and checked against the verified answer.

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