7
QuizMultiple Choice

Economic Systems — Quiz

Question 7 • Economics

A command economy tends to exist under a

Answer
A
democratic government that provides little regulation.
B
representative government that provides no regulation.
C
socialist government that provides some regulation.
D
communist government that provides a lot of regulation.

Explanation

A command economy is one in which the government makes most major decisions about production and distribution. Communist governments typically exercise extensive control over economic activity, so the best answer is a communist government that provides a lot of regulation. The other choices describe limited government involvement, which is not characteristic of a command economy.

AI-written and checked against the verified answer.

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