Which statement best describes a command economy?
Individuals make most economic choices.
Market forces decide most economic questions.
The government controls most economic activity.
Businesses determine most economic outcomes.
The government controls most economic activity.
The statement that best describes a command economy is: "The government controls most economic activity."
The statement that best describes a command economy is:
The government controls most economic activity.
To arrive at this answer, we can analyze the characteristics of a command economy. In a command economy, the government has control over the allocation of resources and the means of production. This means that the government determines what goods and services are produced, how they are produced, and how they are distributed. The government also controls the prices of goods and wages for workers. Economic decisions are made by government officials rather than by individuals or market forces. This centralized control distinguishes a command economy from other economic systems.