Which of the following statements is true about a command economy?
A) Shortages occur because of complexities in the planning process.
B) Planners determine what, how many, and for whom goods and services are to be produced.
C) Planners often allocate goods and services through a rationing system.
D) The quality of produced goods and services tends to be inferior.
E) All of the above are true.

Question

Quizplus · Accepted Answer

In a command economy, central planners make decisions about production and distribution, often leading to shortages, rationing, and inferior quality of goods due to lack of competition and innovation.

Which of the Following Statements Is True About a Command