Which of the following is characteristic of a command allocation system?
A) The government's role is to ensure the protection of consumer rights.
B) Product distribution is handled by a large number of intermediaries.
C) The state makes decisions on what consumers should purchase.
D) Consumers allocate resources to the system.

Question

Quizplus · Accepted Answer

In a command allocation system, the state or government makes decisions on what goods and services should be produced and distributed, including decisions on what consumers should purchase. This is in contrast to market allocation systems where consumers make these decisions based on supply and demand. Options A and B do not relate to a command allocation system, and option D is not applicable as consumers do not allocate resources in this type of system.

Which of the Following Is Characteristic of a Command Allocation