Compared with free market economies, command economies are more likely to

Compared with free market economies, command economies are more likely to

• A. Take advantage of economies of scale
• B. Produce goods for sale in international markets
• C. Suffer from high unemployment
• D. Base economic decisions on national goals

Answer: (D)

In a command economy, the government plans and directs what gets produced, how it’s produced, and for whom, using a centralized plan. Because those plans are designed to reach national objectives—like rapid industrial growth, defense, or social welfare—economic decisions are guided by national goals rather than by consumer demand or profits. That makes basing economic decisions on national goals the best fit for how a command economy operates. The other options reflect market-driven ideas: economies of scale come from private competition and signaling prices, producing for international markets depends on trade demand rather than central targets, and unemployment levels aren’t the defining feature of a system that's organized around state planning and full-employment aims.

In a command economy, the government plans and directs what gets produced, how it’s produced, and for whom, using a centralized plan. Because those plans are designed to reach national objectives—like rapid industrial growth, defense, or social welfare—economic decisions are guided by national goals rather than by consumer demand or profits. That makes basing economic decisions on national goals the best fit for how a command economy operates. The other options reflect market-driven ideas: economies of scale come from private competition and signaling prices, producing for international markets depends on trade demand rather than central targets, and unemployment levels aren’t the defining feature of a system that's organized around state planning and full-employment aims.