Which of the following is true of a command economy?

Question

Quizplus · Accepted Answer

A command economy is a system in which the government controls everything from production to distribution. In such an economy, there is no room for private entrepreneurship, as the state takes on the role of determining what goods and services should be produced, how much should be produced, and at what price they should be sold. Therefore, option (C) is correct. Option (A) is incorrect because in a command economy, all factors of production are controlled by the state. Option (B) is incorrect because in a command economy, the state performs all functions related to production and distribution, leaving no room for the private sector. Option (D) is incorrect because a command economy does not follow the doctrine of laissez-faire, which advocates for minimal government interference in the economy.

Which of the Following Is True of a Command Economy