In a command economy, which of the following is typically prohibited?

• A. Centralized economic planning
• B. Private ownership of most resources
• C. Government regulation of prices
• D. Production quotas set by the state

Answer: (B)

Verified step by step guidance

1. Understand the characteristics of a command economy: it is an economic system where the government has significant control over production, resource allocation, and pricing decisions.
2. Identify what centralized economic planning means: it refers to the government making decisions about what and how much to produce, which is a defining feature of a command economy and therefore not prohibited.
3. Recognize that government regulation of prices is common in a command economy, as the state often sets prices to control the market, so this is also not prohibited.
4. Understand that production quotas set by the state are typical in a command economy to meet planned targets, so these are not prohibited either.
5. Conclude that private ownership of most resources is typically prohibited in a command economy because the state owns and controls the majority of resources to implement its plans.