JAMB UTME - Economics - 2007 | Green Bridge CBT

Question 1 Report

The choice of what to produce in a command economy is determined by

industrial establishments

labour unions

the government and labour unions

the central government Correct answer

Answer Details

In a command economy, the choice of what to produce is determined by the central government. This means that the government has complete control over what goods and services are produced, how they are produced, and for whom they are produced. The government decides what industries to support and invest in, and how resources should be allocated. This is in contrast to a market economy, where the choice of what to produce is determined by consumer demand and the decisions of private businesses.






Press & Hold to Drag Around
Click Here to Close