Question

1. use the passage to help answer the question below. central planning and state - owned production characterized command economies. resources were allocated by plan instead of by markets. employment was generally full but effectively rationed through an internal passport system. capital was allocated centrally through a single institution. enterprises were responsible for production but not for marketing or pricing. since planning was based on quantity, not quality, enterprises had little incentive for innovation; indeed, innovation or quality improvement was often punished with higher quotas or standards. business ethics, u.s. department of commerce, international trade administration, 2004 what comparison can be made between command economies and market economies? e. 1.1 a. command economies lack central planners and rely on market forces b. command economies are run by central planners and not by market factors c. command economies fail to allocate resources or meet the needs of consumers d. command economies focus on the wants and needs of consumers instead of set allocation of resources

Explanation:

The passage states central planning and state - owned production are key in command economies, with resources allocated by plan, not markets. This indicates central planners are in control, not market forces.

Answer:

B. Command economies are run by central planners and not by market factors