In a command economy, the primary role of the government is that the government makes all economic decisions. This includes decisions about production, distribution, and allocation of resources. The government typically owns the means of production and controls the flow of goods and services, rather than allowing market forces or private individuals to dictate these aspects of the economy.
The other statements you provided do not accurately describe the role of government in a command economy:
- The government does not typically allow private ownership of resources.
- Individuals do not have the power to set prices; this is controlled by the government.
- The government does not primarily encourage competition, as the economy is usually structured around state control rather than competitive market dynamics.
Overall, a command economy is characterized by central planning and government intervention rather than market-driven forces.