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What is the biggest factor or factors affecting the answers to questions in a command economy?

A) Government control
B) Supply and demand
C) Market competition
D) Consumer preferences

1 Answer

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Final answer:

The most significant factor in a command economy is government control, as the government determines production, prices, and wages, unlike market forces which drive a market economy.

Step-by-step explanation:

The biggest factor affecting the answers to questions in a command economy is A) Government control. In this type of economy, the government makes all the important decisions regarding what goods and services will be produced, the prices for these goods and services, the methods of production, and the wages for workers.

Unlike market economies where supply and demand or consumer preferences might drive economic decisions, in a command economy, these market forces have little to no influence because the government directs economic activity. Examples of countries with command economies include Cuba and North Korea, where the government provides many necessities for free and sets prices and wages to maintain uniformity across the nation.

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