Question

Which of the following statements describes the command economy of the Soviet Union?

Answer 1

The Correct Answer Is B

Answer 2

The correct answer is B, that the government decided what goods and services would be produced and supplied to the market.

A Command Economy is a system where the government determines what goods and how much,  should be produced, and the prices at which the goods are offered for trade. Command Economy is just contrary to the Free Market where prices of goods and services are all set up by an invisible force supply and demand in the open market. All the investments and incomes are determined by the Government in the Command economy. This Command Economy is, therefore, a  feature of Communist Society.