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.X

Answer 1

In a command economy, the basic economic questions of what to produce, how to produce, and for whom to produce are primarily decided by government authorities rather than market forces or consumer choices. Therefore, the correct answer is:

C. They are decided based on government priorities.