Question

Which statement best describes a command economy?

Government intervention in economic choices is strictly forbidden.
The government determines economic choices and makes most decisions.
The decisions made by producers and consumers drive all economic choices.
Producers and consumers make some economic choices while the government makes others.

Answer 1

The statement that best describes a command economy is: **The government determines economic choices and makes most decisions.**

In a command economy, the government exerts strong control over economic activities, including the production, distribution, and pricing of goods and services.