791. What is a command economy?
A) An economic system where the government makes all decisions regarding resource allocation and production.
B) An economic system that relies solely on market forces.
C) An economic system that eliminates all forms of government intervention.
D) An economic system where individuals have complete control over resource allocation.
792. In a command economy, who owns and controls the means of production?
A) The government owns and controls all means of production.
B) Private individuals and businesses own and control the means of production.
C) The market forces determine ownership of the means of production.
D) Ownership of the means of production is irrelevant.
793. What is the role of individuals in a command economy?
A) Individuals have complete control over resource allocation.
B) Individuals make decisions collectively through market mechanisms.
C) Individuals play no role in resource allocation.
D) Individuals follow the directives and decisions of the government.
794. Why do command economies exist?
A) To promote individual freedoms.
B) To address perceived shortcomings and inequalities of market economies.
C) To encourage competition.
D) To eliminate government control.
795. How are prices determined in a command economy?
A) Prices are determined by the forces of supply and demand.
B) Prices are set by the government based on central planning.
C) Prices are determined by individuals.
D) Prices are irrelevant in a command economy.
796. In a command economy, how is production planned?
A) Production is centrally planned by the government.
B) Production is determined by market forces.
C) Production is planned by private individuals.
D) Production is irrelevant.
797. What is the significance of private property in a command economy?
A) Private property is irrelevant.
B) Private property is limited, and ownership is often collective or state-controlled.
C) Private property is protected and encouraged.
D) Private property is solely owned by the wealthy.
798. How does a command economy address income inequality?
A) By promoting income inequality.
B) By implementing policies to address income disparities and promote collective ownership.
C) By ignoring income inequality.
D) By leaving income inequality to the market forces.
799. What is the role of competition in a command economy?
A) Competition is encouraged to promote efficiency.
B) Competition is limited, and state-controlled enterprises may operate without competition.
C) Competition is irrelevant.
D) Competition is discouraged.
800. How does a command economy respond to consumer choices?
A) Consumer choices are diverse due to competition.
B) Consumer choices may be limited, and individuals often have fewer options.
C) Consumer choices are irrelevant.
D) Consumer choices are protected by the government.
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