The correct option is <u>(c) the government controls the prices of most goods.
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Further Explanation:
Command economy is also known as a planned economy. When the planners of central government control or own the means of production and when they determine the output’s distribution, it is referred to as the command economy. This type of economy suffers from problems like poor incentives for workers, planners and managers in state-owned enterprises.
The planners of the central government in a command economy are failed to rationally determine proportions, quantities, locations, methods, and the timings of economic activities.
<u>CHARACTERISTICS OF COMMAND ECONOMY
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1. The goods and services are controlled by the government.
2. The finance decisions in the country are taken by the government.
3. The state has power over resources.
4. It has privately-owned entities as well as state-owned entities. The state controls these entities.
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Learn More:
1. How did California differ from the United States in terms of interactions of whites and natives?
<u>brainly.com/question/7248802
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2. Under the articles of confederation, if Virginia had ten thousand citizens and Delaware had five thousand citizens, how many votes would each state have in the legislature?
<u>brainly.com/question/9935193
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Answer Details:
Grade: High School
Chapter: Command Economy
Subject: Social Studies
Keywords: government, command economy, planned economy, means of production, state, incentives, proportions