Sovi.AI - AI Math Tutor

Scan to solve math questions

QUESTION IMAGE

which statement best describes a command economy? ○ government interven…

Question

which statement best describes a command economy?
○ government intervention in economic choices is strictly forbidden.
○ the government determines economic choices and makes most decisions.
○ the decisions made by producers and consumers drive all economic choices.
○ producers and consumers make some economic choices while the government makes others.

Explanation:

Brief Explanations

A command economy is defined by central government control over economic decisions. The first option describes a pure market economy with no government intervention. The third option is a pure market economy driven by supply and demand from producers/consumers. The fourth option represents a mixed economy, where both private actors and the government have roles. Only the second option matches the core trait of a command economy.

Answer:

The government determines economic choices and makes most decisions.