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?

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