Question

question 10 of 34
which of the following describes a problem that exists under command and socialist economic systems?
a. consumers choose between two different fast fooders in their town.
b. merchants will or trade surplus goods to make a profit.
c. manufacturers force laborers to work long hours for low pay.
d. governments own and control land and raw materials in socialism.

Explanation:

To solve this, we analyze each option based on the concept of a market economy (where economic decisions are driven by market forces like supply, demand, and private ownership) and a command economy (where the government makes most economic decisions and owns key resources):

Analyzing Each Option:

• Option A: Consumers choosing between two restaurants in the same town is a typical example of consumer choice in a market economy (driven by personal preference, competition, and market forces). This does not reflect a command economy.
• Option B: Merchants buying/selling surplus goods to make a profit is a core activity in a market economy (profit motive, private trade, and market-driven exchange). This does not reflect a command economy.
• Option C: Manufacturers forcing laborers to work long hours for low pay describes exploitation of labor (a labor rights issue) but is not specific to a command economy (exploitation can occur in various economic systems, including unregulated market economies). This is not the best fit.
• Option D: Governments owning and controlling land and raw materials (key production resources) is a defining feature of a command economy (where the state centrally plans and controls major economic assets).

A command economy is defined by government control over key economic resources (like land and raw materials) and central planning. Options A, B, and C reflect market-driven or labor-exploitation dynamics, while Option D directly aligns with command economy characteristics.

Answer:

D. Governments own and control land and raw materials in production.