Answer: In a command economy, decisions about which goods are produced are based on the directives and priorities set by the government or a central planning authority.
In a command economy, the government controls the means of production and makes decisions about what goods and services should be produced, how much should be produced, and how they should be distributed. These decisions are often made based on the needs of the society as a whole rather than the demands of individual consumers or businesses.
The government or central planning authority typically sets production targets for different industries or sectors, and allocates resources such as labor, capital, and raw materials accordingly. The goal is to produce goods and services that are considered essential for the well-being of society, such as food, housing, healthcare, and education.
While a command economy can provide some benefits, such as the ability to direct resources towards important social priorities and to avoid market failures, it can also lead to inefficiencies and shortages if the government's directives are not well-informed or effectively implemented.
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