How are the basic economic questions decided in a command economy?

Question

A.
They are decided based on custom and habit.

B.
They are decided based on supply and demand.

C.
They are decided based on government priorities.

D.
They are decided based on consumer preferences.

Answer 1

C. They are decided based on government priorities.

In a command economy, the government makes the decisions regarding the allocation of resources, production, and distribution of goods and services, based on its priorities and planning rather than market forces or consumer preferences.