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 government determines economic choices and makes most decisions."

Explanation: In a command economy central planners (the government) decide what to produce, how to produce it, and who gets the output, rather than letting market forces or individual consumers and producers make those decisions.