In a command economy
A)a dictator makes every economic decision
B)owners can sell their resources to the highest bidder
C)no individual or group coordinates the economy
D)in theory, individual choices are reflected in collective decisions, and decisions are made by central planners
E)public ownership of resources is combined with free markets to direct economic activity

Question

Quizplus · Accepted Answer

In a command economy, decisions are made by central planners rather than by markets or individuals. In theory, the decisions made by the central planners are meant to reflect the needs and preferences of individuals and groups, but in practice they may not always do so effectively. A dictator may be involved in a command economy, but it is not necessary for the defining characteristics of a command economy. Public ownership of resources is often part of a command economy, but the combination with free markets would make it a mixed economy rather than a command economy.

In a Command Economy