An economic system in which decisions about production and consumption are made by a powerful ruler or government.

• A. Traditional Economy
• B. Command Economy
• C. Market Economy
• D. Economic Equity

Answer: (B)

Decisions about production and consumption controlled by the government define a command economy. In this setup, a central authority plans and directs what to produce, how to produce it, and for whom the goods are intended, often including setting prices and allocating resources. This is why the description fits a command economy, also known as a centrally planned economy. By contrast, a traditional economy relies on customs and habits, a market economy allocates resources through private decisions and prices in voluntary exchanges, and economic equity refers to fairness in outcomes rather than who controls economic decisions. Historical examples of command economies illustrate how central planning shapes production priorities and distribution.