An economy in which a central authority draws up a plan that establishes what will be produced and when, sets production goals, and makes rules for distribution is a
A) free-market economy.
B) laissez-faire economy.
C) public-goods economy.
D) command economy.

Question

Quizplus · Accepted Answer

A command economy is characterized by a central authority (often the government) making all decisions regarding the production and distribution of goods and services, including what will be produced, in what quantity, and who will receive the products.

An Economy in Which a Central Authority Draws Up a Plan