Question

Which statement best describes a command economy?

a. Economic decisions are decentralized and market-driven.
b. The government controls all aspects of economic activity.
c. Individuals have complete autonomy in economic choices.
d. Supply and demand dictate economic policies.

Answer 1

A command economy is a system where the government controls all aspects of economic activity, contrary to a market economy which is decentralized and based on supply and demand.

Step-by-step explanation:

A command economy is best described as a system where the government controls all aspects of economic activity. In a command economy, the government determines what to produce, how to produce it, and who receives the goods or services. This is in contrast to a market economy, where economic decisions are decentralized and based on supply and demand.