Question

What is prohibited in a command economy? CHECK ALL THAT APPLY.the control of prices and income levelsthe rationing of manufactured goodsthe personal ownership of propertythe influence of consumer demandthe intervention of the government

Answer 1

Command economy is referred to a planned economy where the goods produced are a decision of the government and their sale in terms of quantity and prices also depends on the same central authority.

The correct answer is ‘personal ownership of the property’.

Command economy is controlled by the government. In addition, the demand of the consumers is also controlled therefore there are limited choices in the market as far as the products are concerned.