In a command economy, who controls what should be produced and how much should be produced?

• A. The government
• B. Consumers
• C. Producers
• D. International bodies

Answer: (A)

The main idea here is that in a command economy, production decisions are centralized. The government sets what should be produced and how much, directing resources and output through central planning to meet its goals. This stands in contrast to market economies, where consumers’ demand and producers’ choices help decide what gets made. International bodies don’t typically run a nation’s economy in a command system either. So the government is the one in control of these production decisions.