Which one of the following statements about a command (centrally planned) economy is true?
It relies on the price mechanism to allocate scarce resources.
It was strongly advocated by free-market economist Adam Smith.
The state determines what, how, and for whom to produce.
There is typically a high level of consumer sovereignty.
22 exam-style questions on Edexcel A A Level Economics 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.