In a command system,
A) self-interest motivates and commands each business ﬁrm's decisions and actions.
B) the head of each family decides and commands what to do with the family's resources.
C) a government-appointed planning board makes production and allocation decisions.
D) market traders command what outputs are produced and how they are allocated.

Question

Quizplus · Accepted Answer

In a command system, a government-appointed planning board makes production and allocation decisions. It is different from market systems where market traders command what outputs are produced and how they are allocated, and traditional systems where the head of each family decides and commands what to do with the family's resources. In a command system, self-interest may not motivate and command each business firm's decisions and actions, as the state dictates the production and allocation decisions.

In a Command System