- Citizens cannot make most economic decisions.
- Citizens can only work in factories or on farms.
- Citizens must pay for their own health care.
- Citizens have limited access to education.
Answer: Citizens cannot make most economic decisions.
How a Command Economy Limits Economic Decision-Making for Citizens?
In a command economy, the government has centralized control over economic activities, which means it makes most of the crucial economic decisions regarding production, pricing, and distribution of goods and services.
As a result, private citizens have little to no input on what goods are produced, where resources are allocated, or how prices are set. This system limits individual economic freedom, as citizens cannot make choices about starting a business, setting prices, or deciding which goods they would prefer to consume.
This structure impacts daily life by reducing the variety of choices available to citizens, as the government directs production based on its objectives rather than consumer demand. This can lead to inefficiencies, shortages, or a lack of innovation, as there is little motivation for citizens or businesses to adapt to consumer preferences or market demands. Ultimately, a command economy’s centralized approach restricts the personal economic freedoms that would otherwise be available in a market-based system.
