Which of the following is a major advantage of a command economy?

• A. There is a high degree of consumer choice
• B. Resources can be allocated quickly to meet national priorities
• C. Market forces determine production and distribution
• D. Prices are determined solely by consumer demand

Answer: (B)

Verified step by step guidance

1. Understand the definition of a command economy: it is an economic system where the government or central authority makes all decisions about production and distribution of goods and services.
2. Recognize that in a command economy, consumer choice is typically limited because the government controls what is produced, so the option 'There is a high degree of consumer choice' is unlikely to be an advantage.
3. Recall that market forces (supply and demand) do not determine production and distribution in a command economy; instead, these decisions are centrally planned, so 'Market forces determine production and distribution' is not correct.
4. Consider how prices are set in a command economy: prices are often fixed or controlled by the government rather than determined solely by consumer demand, so 'Prices are determined solely by consumer demand' is incorrect.
5. Identify that a major advantage of a command economy is the ability to allocate resources quickly and directly to meet national priorities, such as during emergencies or large-scale projects, which aligns with the correct answer.