How is the allocation of goods and services production determined in a command economy?(1 point)

Question

How is the allocation of goods and services production determined in a command economy?(1 point)

Responses

Businesses decide what to produce on the basis of market conditions.
Businesses decide what to produce on the basis of market conditions.

Consumers decide through their behavior in the marketplace.
Consumers decide through their behavior in the marketplace.

Central government planning decides what will be produced.
Central government planning decides what will be produced.

Supply and demand control production and price.

Answer 1

Central government planning decides what will be produced.

Answer 2

In a command economy, the allocation of goods and services production is determined by central government planning. The government makes decisions on what will be produced, how much will be produced, and who will receive the goods and services. This is in contrast to a market economy, where businesses decide what to produce based on market conditions and consumers influence production through their behavior in the marketplace. Additionally, in a market economy, supply and demand play a significant role in controlling production and price.

Answer 3

In a command economy, the allocation of goods and services production is determined by central government planning. This means that the government decides what will be produced, how much will be produced, and the distribution of the goods and services among the population. The government typically sets production targets and allocates resources to different industries and sectors based on their priorities and goals. This allocation decision is not based on market conditions, consumer behavior, or supply and demand dynamics, as is the case in market economies. Instead, the central government exercises control and authority over the production and distribution of goods and services in a command economy.