In a command economy, how are the prices of goods and services determined?
Responses
A business ownersbusiness owners
B the central governmentthe central government
C market forces of supply and demandmarket forces of supply and demand
D independent agencies and independent regulatorsindependent agencies and independent regulators
B the central government
In a command economy, the prices of goods and services are determined by the central government. Option B is the correct answer. The government sets the prices based on its own assessments of what is fair and appropriate for the economy.
In a command economy, such as a planned economy, the prices of goods and services are typically determined by the central government. This is option B. In this system, the government controls the production and distribution of goods and services. It sets the prices based on factors like production costs, desired levels of supply and demand, and social objectives.
To find this answer, you can analyze the characteristics of a command economy. In a command economy, the government plays a significant role in making decisions regarding the allocation of resources and the production of goods and services. This includes determining the prices for these goods and services.