2
QuizMultiple Choice

Applying Economics to World History — Unit test

Question 2 • FL-2109010-M/J World History A - Teacher Directed Resource

Which statement best describes a command economy?

Answer
A
Technology remains limited to the use of simple tools.
B
Trade is limited to only the bartering of goods and services.
C
Farming, hunting, and gathering methods change little over time.
D
The government sets prices of goods and services and distributes them.

Explanation

In a command economy, the government makes major decisions about production and distribution. It may set the prices of goods and services and decide how they are distributed, as choice D states. The other choices describe limited or traditional economic practices, not a command economy.

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