Which of the following is one way a command economy affects the lives of private citizens?

• A. Businesses operate independently with minimal government intervention.
• B. Citizens have unrestricted access to all types of goods and services.
• C. The government determines what goods and services are produced, limiting consumer choice.
• D. Private citizens freely set prices based on supply and demand.

Answer: (C)

Verified step by step guidance

1. Understand the definition of a command economy: it is an economic system where the government centrally plans and controls the production and distribution of goods and services.
2. Recognize that in a command economy, the government decides what goods and services are produced rather than leaving these decisions to private businesses or market forces.
3. Analyze how this government control affects private citizens: since the government determines production, consumer choice is limited to what the government allows or produces.
4. Contrast this with other economic systems, such as a market economy, where businesses operate independently and prices are set by supply and demand, allowing more consumer freedom.
5. Conclude that the key effect of a command economy on private citizens is the limitation of consumer choice due to government control over production decisions.