Which of the following is a characteristic of command economies?
A) Rewards to economic agents are based on market prices.
B) Coordination of economic agents is automatic.
C) It is difficult to incentivize economic agents.
D) The invisible hand functions without any restraint.

Question

Quizplus · Accepted Answer

In command economies, the government or a central authority makes all decisions about what, how, and for whom to produce, which can make it difficult to incentivize economic agents effectively. This is because rewards and incentives are not determined by market forces or individual performance but by the state's plans and directives.

Which of the Following Is a Characteristic of Command Economies