Praxis 5511 Practice Question
In a command economy, production is determined by ____.
Correct Answer: A
Rationale: In a command economy, production is determined by a central government, which makes decisions on what to produce, how to produce, and for whom to produce. This centralized control ensures that resources are allocated according to planned economic goals rather than market demands.
Option B, consumers, is incorrect as they do not have the power to influence production decisions in a command economy. Option C, foreign manufacturers, is also wrong; they typically operate within market economies and do not dictate local production. Lastly, option D, retailers, play a role in distribution but lack authority over production decisions, making them irrelevant in the context of a command economy.
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