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.
After World War II, much of Europe was devastated and needed to be rebuilt. However the countries had no money because they spent it all during the war. No taxes could be collected because the people were poor and had hardly anything to eat. The United States at this time was the richest nation in the world. Although Russia was an ally during the war against Germany, the relationship changed after the war and it was feared that unless Western Europe rise quickly again, it would fall into communist hands. The United States came up with the Marshall Plan and offered to help the European countries to recover from the effects of the war. Russia and its allies turned down the offer of assistance. The Marshall plan was a success and all the countries who accepted help recovered.
