Which of the following is a characteristic of a pure command economy?
A)all resources are privately owned
B)economic activity is coordinated by the price system
C)competitive markets guide resources to their highest-valued uses
D)centralized economic planning is used to answer the basic economic questions
E)economic choices are voluntary and are based on rational self-interest

Question

Quizplus · Accepted Answer

In a pure command economy, centralized economic planning is used to answer the basic economic questions such as what to produce, how to produce, and for whom to produce. This means that the government owns and controls all resources and economic activity is directed by the government rather than the market.

Which of the Following Is a Characteristic of a Pure