In a command economy, the three economic questions are answered by which of the following?
A) The production and consumption choices made by sellers and buyers in decentralized markets.
B) A cartel of major transnational corporations, government agencies, and consumer advocates.
C) A trilateral commission of major corporations, elected officials, and economists.
D) A central authority such as a peoples' committee or a dictator.

Question

In a command economy, the three economic questions are answered by which of the following? ​
A) ​The production and consumption choices made by sellers and buyers in decentralized markets.
B) ​A cartel of major transnational corporations, government agencies, and consumer advocates.
C) ​A trilateral commission of major corporations, elected officials, and economists.
D) ​A central authority such as a peoples' committee or a dictator.

Quizplus · Accepted Answer

In a command economy, all decisions regarding the production, allocation and distribution of goods and services are made by a central authority such as a government committee or dictator. Therefore, the answer is D.

In a Command Economy, the Three Economic Questions Are Answered