How does a command economy affect consumer choice?

Economics Command Economy Questions



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How does a command economy affect consumer choice?

In a command economy, consumer choice is significantly limited as the government or central authority controls the production and distribution of goods and services. The government determines what goods and services are produced, how they are produced, and who receives them. This means that consumers have little to no say in what is available to them and are often limited to a narrow range of options. The government's priorities and objectives dictate the allocation of resources, resulting in limited variety and availability of products. Consequently, consumer choice is restricted, and individuals have less freedom to make decisions based on their preferences and needs.