Politics

Question

Which of the following is NOT true of a pure command economy? *

Allocation decisions are centrally coordinated

Capital and labor are allocated based on a centralized plan

O The factors of production are collectively owned

• Prices serve as signals to allocate resources

Answer

The factors of production are collectively owned

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A pure command economy is an economic system in which the government makes all economic decisions and owns all the factors of production. Prices do not serve as signals...