A principal feature of a command economy is that ____________.
A) production decisions are made by profit-maximizing firms.
B) there is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.
C) consumers are allowed to determine that is produced based on their demand for goods and services.
D) regulatory agencies constrain the most egregious forms of market power in a market system of allocation.

Question

Quizplus · Accepted Answer

In a command economy, production decisions are made by a central planning board rather than by profit-maximizing firms, consumer demand, or regulatory agencies. The central planning board is responsible for deciding what goods and services will be produced and in what quantities, as well as setting prices and allocating resources.

A Principal Feature of a Command Economy Is That ____________