How is the allocation of goods and services production determined in a command economy?(1 point)

Question

Responses

Businesses decide what to produce on the basis of market conditions.
Businesses decide what to produce on the basis of market conditions.

Consumers decide through their behavior in the marketplace.
Consumers decide through their behavior in the marketplace.

Central government planning decides what will be produced.
Central government planning decides what will be produced.

Supply and demand control production and price.
Supply and demand control production and price.
Question 2

Answer 1

What is a challenge of a market economy?(1 point)
Responses

Inefficiency in resource allocation due to lack of government intervention.
Inefficiency in resource allocation due to lack of government intervention.

Limited consumer choice and freedom.
Limited consumer choice and freedom.

Lack of motivation for businesses to innovate and improve products.
Lack of motivation for businesses to innovate and improve products.

Inequality and wealth concentration.
Inequality and wealth concentration.