What do countries with command economies base their answers to economic questions on?
A.
what skills workers have
B.
what consumers demand
C.
what previous generations produced
D.
what the government wants to produce
D. what the government wants to produce
D. what the government wants to produce
The correct answer is D. Command economies base their answers to economic questions on what the government wants to produce. In a command economy, the government has significant control over the allocation and production of resources. It determines what goods and services should be produced, in what quantities, and sets the prices accordingly. This approach contrasts with market economies, where suppliers and consumers make decisions based on demand and supply forces.
To arrive at this answer, it helps to understand the basic principles of a command economy and the role of the government. In a command economy, the government typically owns and controls the means of production and makes decisions regarding resource allocation. The central authority sets production targets, plans investments, and determines the distribution of goods and services. By exercising control over the economy, the government can prioritize certain industries, align production with societal goals, and try to achieve economic stability.
In contrast, in market economies, economic questions are answered based on what consumers demand and the interplay of supply and demand forces. In such systems, prices, investments, and resource allocation are driven by the decisions of individual consumers and businesses operating within a competitive market framework.
Therefore, considering the attributes of command economies, the correct option is D - what the government wants to produce.