QUESTION IMAGE
Question
how does a command economic system answer the three economic questions? consumers and producers decide freely in markets; religious customs determine production and distribution; central government planners make the decisions; local councils vote on every product
Brief Explanations
In a command economic system, the central government (or central planners) has the authority to make economic decisions, including what to produce, how to produce, and for whom to produce. Let's analyze each option:
- "Consumers and producers decide freely in markets" describes a market economy, not a command economy.
- "Religious customs determine production and distribution" is characteristic of a traditional economy.
- "Central government planners make the decisions" aligns with the definition of a command economy, where the government centrally plans economic activities.
- "Local councils vote on every product" is not a typical feature of a command economy (command economies rely on central planning, not local council votes for each product).
Snap & solve any problem in the app
Get step-by-step solutions on Sovi AI
Photo-based solutions with guided steps
Explore more problems and detailed explanations
C. Central government planners make the decisions