Which statement best describes how the distribution of goods and services is determined in a communist economy?
Understand the Problem
The question is asking which statement accurately describes the distribution of goods and services in a communist economy. It presents multiple choice options that capture different economic principles.
Answer
Government officials decide what and how much to produce.
The statement 'Government officials decide what and how much to produce' best describes how the distribution of goods and services is determined in a communist economy.
Answer for screen readers
The statement 'Government officials decide what and how much to produce' best describes how the distribution of goods and services is determined in a communist economy.
More Information
In a communist economy, the government centrally plans and controls the production and distribution of goods and services, determining output based on needs and goals rather than market demands.
Tips
A common mistake is assuming supply and demand dictate production in a communist economy, which is more typical of capitalist systems.
Sources
- Command Economy: Definition, How It Works, and Characteristics - investopedia.com
- Communism | Definition, History, Varieties, & Facts - Britannica - britannica.com
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