Which term describes an economic system in which the government controls a country's economy?

Which term describes an economic system in which the government controls a country's economy?

• A. Command Economy
• B. Market Economy
• C. Justice
• D. Patriotism

Answer: (A)

A command economy is an economic system in which the government controls a country’s economy by planning and directing what goods and services are produced, how resources are allocated, and how prices are set. In this setup, central planners decide production goals and distribution, rather than relying on the choices of individuals and businesses in a marketplace. This is different from a market economy, where decisions come from buyers and sellers through supply and demand with limited government involvement. Justice and patriotism aren’t economic systems—justice is about fairness under law, and patriotism is loyalty to one’s country—so they don’t describe how an economy is organized.

A command economy is an economic system in which the government controls a country’s economy by planning and directing what goods and services are produced, how resources are allocated, and how prices are set. In this setup, central planners decide production goals and distribution, rather than relying on the choices of individuals and businesses in a marketplace. This is different from a market economy, where decisions come from buyers and sellers through supply and demand with limited government involvement. Justice and patriotism aren’t economic systems—justice is about fairness under law, and patriotism is loyalty to one’s country—so they don’t describe how an economy is organized.