Question

How does a socialist government with a command economy manage its economy?

The government lets producers set wages for workers.
The government owns all homes and other forms of housing.
The government allows consumers to make their own choices.
The government controls factories and other forms of production.

Answer 1

Correct answer: The government controls factories and other forms of production.

Explanation: A command (centrally planned) economy is characterized by state ownership or control of the means of production and central planning of output, investment, and distribution. Wages, prices, and production targets are typically set by the government, consumer choice is limited by what the plan produces, and housing may or may not be state-owned but is not the defining feature.