Which of the following best describes a command economy?
A) An economy that is characterized by a barter trade of goods and services
B) An economy where strong controls are imposed by the ruling authority
C) An economy in which resources are allocated through the price mechanism
D) An economy in which there are a few privately owned firms

Question

Quizplus · Accepted Answer

A command economy is also known as a centrally planned economy, in which the government or ruling authority is in charge of making economic decisions such as what goods and services to produce, how much to produce, and at what price. Strong controls and regulations are imposed by the ruling authority in order to implement the decisions made.

Which of the Following Best Describes a Command Economy