A. Government involvement in matters of economic policy is completely prohibited.
B. Most economic choices and decisions are made by the government.
C. All economic decisions are influenced by the choices made by producers and consumers.
D. Some economic decisions are made by consumers and producers, while others are made by the government.
Solution : Option (B) The correct answer to the question, of which statement best describes a command economy, is that Most economic choices and decisions are made by the government.
Explanation
The government controls all economic activity and makes all of the major economic decisions in a command economy. Instead of depending on market forces like demand and supply, it sets the production, pricing, and distribution of goods. The state plans and governs the economy to achieve its objectives, often preferring national interests, equality, or specific allocation of resources. Whereas economic decisions in market economies are determined by supply and demand.
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