6
AssignmentMultiple Choice

Applying Economics to World History

Question 6 • FL-2109010-M/J World History A - Teacher Directed Resource

Which statement best describes a command economy?

Answer
A
Trade is limited to barter, or trading goods or services for other goods or services.
B
The government owns resources and sets prices for goods and services.
C
Economic activity occurs mainly within a family, clan, or tribe.
D
All transactions are made with currency.

Explanation

In a command economy, the government directs major economic decisions, including owning or controlling resources and setting prices for goods and services. Barter and family-based economic activity describe other kinds of economies, while using currency alone does not define a command economy.

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