28
QuizMultiple Choice

1.4 Economic Systems

Question 28 • 2026 VA Economics and Personal Finance - IC

Which statement best describes a command economy?

Answer
A
Government intervention in economic choices is strictly forbidden.
B
The government determines economic choices and makes most decisions.
C
The decisions made by producers and consumers drive all economic choices.
D
Producers and consumers make some economic choices while the government makes others.

Explanation

In a command economy, the government directs economic activity, including deciding what is produced and how resources are allocated. Therefore, the government determines economic choices and makes most decisions. Choice D better describes a mixed economy, where consumers, producers, and the government all make economic decisions.

AI-written and checked against the verified answer.

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