Question

Who makes the economic decisions in a command economy?

Answer 1

A. The president makes the economic decisions in a command economy.

A command economy is an economy where government officials, headed by the president, make most of the decisions.

The government owns some or all of the industries producing goods and services. They decide on what goods to produce and its corresponding prices, as well as, how to distribute the goods.

Under this economy, mass unemployment is avoided, abuse of monopoly power is prevented, and produced goods will benefit society and enable everyone to have access to their basic necessities.