How is the allocation of goods and services production determined in a command country?

Businesses decide what to produce on the basis of a market condition
Consumers decide through their behaviors in the marketplace
Central government planning decides what will be produced
Supply & demand, control, production, and price

1 answer

In a command country, the allocation of goods and services production is primarily determined through central government planning. The government sets production targets and determines what goods and services will be produced, in what quantities, and by which producers. The government may also control the production process and make decisions regarding prices and distribution.

Supply and demand play a limited role in determining production in a command economy as the government's central planning typically overrides market forces. However, the government may take into account certain aspects of supply and demand when making production decisions.

In a command economy, businesses do not have much autonomy or discretion in deciding what to produce. They are usually directed by the central planning authority to produce certain goods and services based on the government's goals and priorities. Consumer behavior in the marketplace also has limited influence, as the government dictates what will be available for consumers to purchase.

Overall, the allocation of goods and services production in a command country is primarily determined by central government planning, with limited consideration given to supply and demand dynamics, control over production processes, and price setting.