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Multiple Choice
In a command economy, which group of people ultimately determines the products that are produced?
A
Consumers
B
Government planners
C
Market forces
D
Private entrepreneurs
Verified step by step guidance
1
Understand the nature of a command economy: In this economic system, the government has central control over production and distribution decisions.
Identify the key decision-makers: Unlike market economies where consumers and entrepreneurs influence production through demand and supply, in a command economy, these decisions are made by a centralized authority.
Recognize the role of government planners: They set production targets, allocate resources, and decide what goods and services are produced based on planned objectives rather than market signals.
Contrast with other options: Consumers and market forces do not directly determine production in a command economy, and private entrepreneurs typically do not have decision-making power.
Conclude that government planners are the group that ultimately determines the products produced in a command economy.