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In Country X, the factors of production are all publicly owned and controlled by the government. The basic economic questions of what to produce, how to do so, and how to distribute goods are determined by Country X's government and not by market forces. Because they are set by central planners, prices do not signal to producers whether to increase or decrease production.
What kind of economy does Country X have?
A.
The government's role in setting the prices of goods shows that Country X has a market economy.

B.
The government's ownership of the factors of production shows that Country X has a market economy.

C.
The government's encouragement of entrepreneurship shows that Country X has a command economy.

C. The government's ownership and control of the factors of production, as well as central planning and lack of market forces determining production and prices, indicate that Country X has a command economy.

C. The government's control over the factors of production and determination of what to produce, how to produce, and how to distribute goods indicate that Country X has a command economy.

C. The government's ownership and control of the factors of production, as well as its central role in determining what to produce, how to produce, and how to distribute goods, indicate that Country X has a command economy. In a command economy, the government has centralized control over economic decisions and planning, rather than relying on market forces to determine prices and production levels.