How do communist command economies typically answer the basic economic question of what goods and services to produce?

• A. Production decisions are made by democratic voting among citizens.
• B. Goods and services are produced according to individual entrepreneurs' choices.
• C. Central planners decide based on government priorities and plans.
• D. Producers respond to consumer demand in free markets.

Answer: (C)

Verified step by step guidance

1. Understand the basic economic question: 'What goods and services to produce?' This question addresses how an economy decides the allocation of resources to different products and services.
2. Recognize that in a communist command economy, the allocation of resources and production decisions are not made by individual consumers or entrepreneurs, nor through democratic voting.
3. Identify that central planners, typically government officials or agencies, make production decisions based on government priorities and economic plans.
4. Know that these central planners set production targets and allocate resources according to a comprehensive plan designed to meet societal goals rather than responding directly to consumer demand.
5. Conclude that the characteristic feature of a communist command economy is that production decisions are centrally coordinated and planned, rather than determined by market forces or individual choices.