What defines a command economy?

A command economy is defined as an economic system where the government exerts significant control over all aspects of the economy, including the production, distribution, and pricing of goods and services. This structure is characterized by centralized decision-making, where the government often dictates what is produced, how much is produced, and who receives the goods and services.

In such economies, individual choice and market forces play a minimal role, as the state plans and manages economic activity to achieve specific social and economic goals. Command economies can often be contrasted with market economies, where decisions are primarily driven by consumer preferences and private enterprises.

The other options do not accurately depict the nature of a command economy. For instance, economies with minimal government intervention or those based on voluntary market exchanges are indicative of more market-oriented systems, while economies that operate solely on traditional practices refer to traditional economies, which rely on customs and social norms for their economic activities.