In a command economy, who determines what will be produced, how, and who benefits?

• A. The government.
• B. Consumers decide.
• C. Private firms decide with market signals.
• D. International bodies decide.

Answer: (A)

In a command economy, the government controls production decisions through central planning. Central planners decide what goods and services will be produced, how resources (like labor and capital) will be allocated, and who will benefit from the output. Prices and production targets are set by the state rather than by market forces, so consumer preferences have little influence on what gets made.

Private firms don’t guide production here; they follow the directives of the state. International bodies don’t determine national production either—the government of the country makes these decisions. That’s why the government is the best answer: it directly determines what is produced, how it’s produced, and who benefits.