Answer :

The situation that best illustrates how production decisions are made in a command economy is (B) a government panel orders factories to make more fuel-efficient cars.

What is a command economy?

  • A planned economy is a form of economic system in which investment, production, and capital goods allocation follow economy-wide economic and production plans.
  • Economic planning in a planned economy might be centralized, decentralized, participative, or Soviet-style.
  • The degree of centralization or decentralization in decision-making and involvement is determined by the type of planning mechanism used.
  • Central planning has been utilized by socialist regimes based on the Soviet model, albeit a minority, such as the former Socialist Federal Republic of Yugoslavia, has adopted some kind of market socialism.
  • Market abolitionist socialism substitutes direct calculation for factor markets as a means of coordinating the activity of the different socially-owned economic businesses that comprise the economy.

In conclusion (B) a government panel orders factories to make more fuel-efficient cars is the finest example of how production choices are decided in a command economy.

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Correct answer:

Which situation best illustrates how production decisions are made in a

command economy?

A. A village elder teaches young farmers which crops to grow in

different seasons.

B. A government panel orders factories to make more fuel-efficient

cars.

C. A grocery store stops buying meat from farms that abuse animals.

D. A company designs a new laptop computer with features

consumers want.

Answer: it's A company designs a new laptop computers with features consumer want.

Explanation:

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