An economy in which economic decisions are primarily centralized, rather than based on the interactions of buyers and sellers, is known as a _____ economy.

Question

Quizplus · Accepted Answer

A command economy is characterized by central planning, where a central authority makes the major decisions about what, how, and for whom to produce, rather than those decisions being made through the market forces of supply and demand.

An Economy in Which Economic Decisions Are Primarily Centralized, Rather