Question

question 1-7
which statement best defines a command economy?
○ economic decisions are based on supply and demand.
○ means of production are controlled by the government.
○ means of production are determined by private ownership.
○ economic decisions are dependent on customs and traditions.

Explanation:

A command economy is one where the government makes major economic decisions. It controls the means of production (like factories, land used for production). In a market economy, supply and demand (first option) drive decisions. Private ownership (third option) is more characteristic of a capitalist economy. Customs and traditions (fourth option) are key in a traditional economy.

Answer:

Means of production are controlled by the government.