Question

One reason that a command economy might be preferred to a capitalist economy is because in a command economy the production choices tend to reflect the preferences of society rather than the choices of government planners.

a) True
b) False

Answer 1

In a command economy, the production choices tend to reflect the preferences of society, as determined by the government.

Step-by-step explanation:

In a command economy, the government decides what goods and services will be produced, how they will be produced, and the prices for them.

Central planners, who are government officials, make these decisions and aim to reflect the preferences of society. This means that production choices are not determined by individual businesses or government planners, but rather by the government acting on behalf of society.

For example, in a command economy, the government may prioritize the production of basic necessities like food, housing, and healthcare to ensure that everyone in society has access to these essential goods and services.

Additionally, the government may regulate prices to make them affordable for the general population.

Overall, in a command economy, the production choices are intended to reflect the needs and preferences of society as a whole, as determined by the government.