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 decides what will be produced and in what quantities. This is in contrast to a market economy, where businesses decide what to produce based on market conditions and consumer behavior in the marketplace, and supply and demand control 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, in what quantities, and how it will be allocated among the population. The central government sets production targets, determines the allocation of resources, and establishes prices for goods and services. This top-down approach is in contrast to a market economy, where businesses decide what to produce based on market conditions and consumers determine production through their behavior in the marketplace.