7
practice testMultiple Choice

Practice Test

Question 7 • Economics (Full-Year)

Which statement best describes a command economy?

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

Explanation

In a command economy, the government makes the central economic decisions, including what is produced, how goods and services are distributed, and what prices are charged. This matches choice A. Choice B describes a free-market economy, while choice D describes a mixed economy.

AI-written and checked against the verified answer.

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