Which statement best describes a command economy?
(A) Technology remains limited to the use of simple tools.
(B) Trade is limited to only the bartering of goods and services.
(C) Farming, hunting, and gathering methods change little over time.
(D) The government sets prices of goods and services and distributes them.
See first post.
The correct answer is (D) The government sets prices of goods and services and distributes them.
To determine the best answer, let's first understand what a command economy is. A command economy is an economic system in which the government or a central authority has significant control over economic planning and decision-making. In a command economy, the government has the power to set prices, determine production levels, and allocate resources.
Now, let's analyze the statements provided:
(A) Technology remains limited to the use of simple tools: This statement does not describe a command economy. It refers to the level of technological advancement and is not directly related to the economic system in place.
(B) Trade is limited to only the bartering of goods and services: This statement does not describe a command economy either. It describes a barter economy where people trade goods and services directly, without the use of money.
(C) Farming, hunting, and gathering methods change little over time: This statement also does not describe a command economy. It refers to the methods of producing food and does not necessarily correlate with the economic system in place.
(D) The government sets prices of goods and services and distributes them: This statement accurately describes a command economy. In this type of economic system, the government has the authority to determine the prices at which goods and services are sold. Additionally, the government also plays a role in the allocation and distribution of goods and services.
Therefore, the best answer is (D) The government sets prices of goods and services and distributes them.