How is the allocation of goods and services production determined in a command economy?(1 point)

Question

How is the allocation of goods and services production determined in a command economy?(1 point)

Responses

Businesses decide what to produce on the basis of market conditions.
Businesses decide what to produce on the basis of market conditions.

Consumers decide through their behavior in the marketplace.
Consumers decide through their behavior in the marketplace.

Central government planning decides what will be produced.
Central government planning decides what will be produced.

Supply and demand control production and price.
Supply and demand control production and price.
Question 2

Answer 1

What is a challenge of a market economy?(1 point)

Responses

Inefficiency in resource allocation due to lack of government intervention.
Inefficiency in resource allocation due to lack of government intervention.

Limited consumer choice and freedom.
Limited consumer choice and freedom.

Lack of motivation for businesses to innovate and improve products.
Lack of motivation for businesses to innovate and improve products.

Inequality and wealth concentration.
Inequality and wealth concentration.

Answer 2

The allocation of goods and services production in a command economy is determined by central government planning.

Answer 3

In a command economy, the allocation of goods and services production is determined by central government planning. This means that the government decides what will be produced, how much will be produced, and at what price it will be sold. The government has control over the entire economy and sets production targets and quotas for different industries and sectors. This centralized planning system is in contrast to a market economy, where businesses and consumers play a more significant role in determining what gets produced through their individual decisions and behavior.