In a command economy, decisions about how to allocate resources are made:
A)based upon tradition.
B)by a central planning board.
C)by individuals and firms interacting in markets coordinated by a price system.
D)by a lottery system.

Question

In a command economy, decisions about how to allocate resources are made:
A)​based upon tradition.
B)​by a central planning board.
C)​by individuals and firms interacting in markets coordinated by a price system.
D)​by a lottery system.

Quizplus · Accepted Answer

In a command economy, decisions about how to allocate resources are made by a central planning board. This board determines what goods and services will be produced, how much should be produced, and what prices should be charged. This system is typically associated with communist countries like China, Cuba, and the former Soviet Union.

In a Command Economy, Decisions About How to Allocate Resources