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Economic Systems

Question 4 • (Galli)WCA 2221 Civics/Economics 1st nine weeks 26-27

What is prohibited in a command economy? Select two answers.the control of prices and income levelsthe rationing of manufactured goodsthe personal ownership of propertythe influence of consumer demandthe intervention of the government

Answer
A
the control of prices and income levels
B
the rationing of manufactured goods
C
the personal ownership of property
D
the influence of consumer demand
E
the intervention of the government

Explanation

In a command economy, the government directs production and distribution rather than leaving decisions to private owners and consumers. Personal ownership of productive property is restricted, and consumer demand does not determine what gets produced. The government’s control of prices and its intervention are features of this system, while rationing may be used to distribute goods.

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