Question

Which situation would most likely take place in a command economy?

A. The government decides that factories should make fewer planes.
B. A worker quits his job and decides to start his own company.
C. The government reduces environmental regulations on
corporations
D. Two car companies compete to make the cheapest electric car.

Answer 1

A. The government decides that factories should make fewer planes.

Step-by-step explanation:

In a command economy, the government took full control over every single aspect of the economy. Starting from ownership of resources, The type of jobs that the citizens can and cannot do, how to manage and utilize factors of production, etc. Deciding to produce fewer planes fall under the category of managing factors of production.

In this economy, the things that the consumers want matter less compared to what they have in the capitalist system. Government tend to be the one that determine the trend in the market.