Final answer:
A command economy is where the government exercises substantial control over production and allocation of goods and services, makes all major economic decisions, and provides necessities like healthcare and education for free, as seen in Cuba and North Korea. Option 4
Step-by-step explanation:
The command economy is a type of economic system where the government has substantial control over the production and allocation of goods and services. In a command economy, decisions regarding what to produce, how to produce it, and for whom it is produced are made by central authorities rather than left to the market forces of supply and demand.
For example, in countries with command economies like Cuba and North Korea, the government not only decides which goods and services are needed but also controls the resources and means of production, often setting wages and prices, and providing necessities such as healthcare and education at no cost to the citizenry.
The correct statement that best describes a command economy, in this case, is: 4) The production and allocation of goods and services is determined primarily through government. This highlights the extensive central planning and governmental control over the economy, contrasting with the decentralized decision-making characteristic of market economies. Option 4