Question

Which describes a command economy?

Responses

uses only free-market principles

uses only free-market principles

run by the government

run by the government

designed to protect private property

designed to protect private property

organized by producers and consumers

Answer 1

A command economy is best described by the response: **run by the government**. In a command economy, the government makes all decisions regarding production, distribution, and prices, rather than relying on the market forces of supply and demand.