Which of the following is a characteristic of a pure command economy?
A)All resources are privately owned.
B)Economic activity is coordinated by the price system.
C)Competitive markets guide resources to their highest-valued uses.
D)Centralized economic planning is used to answer the basic economic questions.
E)Economic choices are voluntary and are based on rational self-interest.

Question

Quizplus · Accepted Answer

A pure command economy relies on centralized economic planning to answer the basic economic questions. All resources are owned by the government, and economic activity is not coordinated by the price system or competitive markets. Economic choices are not voluntary, as individuals are required to follow the decisions made by the government.

Which of the Following Is a Characteristic of a Pure