Question

Basic economic questions are answered by the central authority in which economic system?

A.)Free market system
B.)Capitalist system
C.)Traditional economic system
D.)Command economic system

Answer 1

D.)Command economic system

Answer 2

The correct answer is D) Command economic system.

A command economic system is one in which a central authority (usually a government) makes all economic decisions regarding the the amout of products that will be made and how these goods will be distributed to citizens. This economic system limits the decision making of citizens and calls on the government (or authority) to answer almost all economic questions.