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

Question

BlackTom AI · Accepted Answer

The question asks which statement is NOT true about a pure command economy.
Option provided: 'a. The main aim of all businesses is to make as much money as possible.'
In a pure command economy, the state owns the means of production and central planners dictate what is produced, how it is produced, and for whom. Profit maximization is not the driving objective; instead, production goals are set to meet government plans and social objectives. Therefore, the claim that businesses aim primarily to maximize profits is incorrect in this context.
The key distinction here is the shift from market-based incentives (profit motive) to planner-based incentives (fulfillment of the plan and social goals). In a command economy, decisions are made to align with the central plan rather than to maximize monetary gain for individual firms, so attributing a profit-maximization aim to all businesses is inaccurate.
If there were other options, you would compare each to the defining features of a command economy—state ownership, centrally planned output, and allocation by government—to determine which statements are true or false. However, since only this option is provided, it is the one that is NOT true about a pure command economy.

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

View Explanation

Log in for full answers

Similar Questions

If an economy's factors of production were owned by the government sector and the coordinating activity was done by a government planning board, the economy would be called:

Which of the following characteristics define a command system? (More than one answer may be correct.) BlackTom题目解析

Choose those characteristics that best describe a command system. BlackTom题目解析

Which of the following best describes a 'command' ('planned') economy?

1. In a command economy, the government sets production levels and wages.

What is a major disadvantage of a command economic system?

In a command economy, the __________ either makes most economic decisions itself or at least strongly influences how the decisions are made.

Which of the following is a characteristic of a centrally-planned economy?

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler