When compared to a mixed-market economy, a command economy typically has:

• A. more consumer choice in goods and services
• B. greater government control over resource allocation
• C. less central planning of production decisions
• D. higher reliance on market forces to set prices

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the definitions of the two economic systems. A command economy is one where the government has significant control over resource allocation and production decisions, while a mixed-market economy combines elements of both government control and market forces.
2. Step 2: Identify the role of government in a command economy. In this system, the government typically makes most decisions about what to produce, how to produce, and for whom to produce, which means there is extensive central planning.
3. Step 3: Compare consumer choice in both systems. Since a command economy relies on government planning, consumer choice is usually limited compared to a mixed-market economy where market forces allow for more variety and competition.
4. Step 4: Analyze the reliance on market forces. A command economy has less reliance on market forces to set prices because prices are often set by the government, whereas a mixed-market economy allows prices to be influenced by supply and demand.
5. Step 5: Conclude that the key difference is the degree of government control over resource allocation, with a command economy having greater government control compared to a mixed-market economy.