When compared to a mixed-market economy, a command economy typically has

When compared to a mixed-market economy, a command economy typically has

A. more private ownership.

B. more government control over production.

C. strong consumer-buying power.

D. a greater chance for a high income.

Answer: B. more government control over production.

In this type of economy, the government has most of the power concerning any economic activities and decisions such as what to produce, how to produce it and who to sell it to. This concept is in contrast with the term used to describe an economic scenario that has features of both a free-market economy and a command economy, the mixed-market economy.

The main feature of a command economy is that resource allocation is carried out through central planning. For instance, in the former Soviet Union, there was central planning where the government designated productive goals for manufacturers, fixed prices for the products and delved out resources to the various segments of the economy. This level of control can mean that the government favours certain sectors/investments or aims, e.g. rapid industrialization, military buildup, etc., at the potential cost to more consumer-orientated sectors.

However, in a mixed market economy such as the western economies the degree of private enterprise and market forces are much higher. Controlling or intervening in the economy is only slightly performed to this day by the government while businesses and consumers have a lot of influence in the concentration of economic decisions. For instance, in America, firms choose what goods to produce on their own and are likely to take accountability on their own <the> price level of products is majorly influenced by forces of demand and supply in the market.

A disadvantage of command economies is that the governments tend to have more control and hence have less effectiveness and consumer freedom than the mixed-market economy. However, it can help in the achievement of a more favourable distribution of resources and faster rollout of macroeconomic reforms when required by the authority.