How is the allocation of goods and services production determined in a command economy?(1 point)
Responses A B C OR D
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.
Supply and demand control production and price.
Question 2
Analyze the chart. Which statement best describes a comparison between East Asian economic systems?
(1 point)
Responses
China's ecomomy is purely market based and Japan's economy is purely command.
China's ecomomy is purely market based and Japan's economy is purely command.
China's economy is purely command, and Japan's is purely market.
China's economy is purely command, and Japan's is purely market.
Taiwan's economy is less market based than that of North Korea
Taiwan's economy is less market based than that of North Korea
North Korea has a more purely command economic system than China.
North Korea has a more purely command economic system than China.
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The allocation of goods and services production is determined by central government planning in a command economy.
In a command economy, the allocation of goods and services production is determined by central government planning. So, the correct answer to the question is:
C) Central government planning decides what will be produced.
To determine this, one can look at the characteristics of a command economy, which include the government having control over production decisions and the distribution of resources. In this type of economy, the government plans and directs the production of goods and services based on its own assessment of what is needed for the society as a whole. The government sets production targets, allocates resources, and may even determine the prices of goods and services. This is in contrast to a market economy, where businesses and consumers have a greater role in determining what is produced through supply and demand dynamics.
The correct answers are:
1. Central government planning decides what will be produced.
2. North Korea has a more purely command economic system than China.