Which of the following statements best describes the role played by prices in a command economy such as the former Soviet Union?
A) Prices were used to allocate resources.
B) Prices played the same role as in a market economy.
C) Prices were used to ration final goods and services but not to allocate resources.
D) None of these statements is descriptive.

Question

Quizplus · Accepted Answer

In a command economy like the former Soviet Union, the government controlled the allocation of resources, so prices were not used to allocate resources. However, prices were used as a means of rationing final goods and services among consumers.

Which of the Following Statements Best Describes the Role Played