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GrogVix [38]
3 years ago
7

In a command economy, how are the prices of goods and services determined?

History
2 answers:
arsen [322]3 years ago
6 0

Answer:

In a command economy, prices of goods and services are determined by the government.

Explanation:

A command economy is an economic system where production and investment decisions are planned by the central authority, usually the government, as opposed to the laissez-faire economy where economic decisions are made by the free interaction between consumers and producers, where individuals make economic decisions.

In these economies, central economic planning by the state or government controls all major sectors of the economy and makes all decisions regarding the use of resources. Planners decide what should be produced and direct the manufacturing companies to produce those goods, in line with national and social objectives.  

Nostrana [21]3 years ago
4 0

The government

In a command economy, the government decided who produces the goods, and how much to sell them for.

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