What typically happens in a command economy?

In a command economy, the government plays a central role by making most, if not all, economic decisions. This includes determining what goods and services are produced, how much is produced, and the prices at which they are sold. The rationale behind this system is that the government can prioritize the needs of the society as a whole, effectively planning and directing resources to achieve specific economic goals and ensure equitable distribution. This contrasts sharply with other economic systems, where individual consumers and businesses have more autonomy and influence over economic activities.

In contrast, the other options illustrate characteristics of different economic systems. For instance, complete consumer freedom in buying and selling is more applicable to a market economy, where supply and demand play significant roles. Additionally, businesses operating without regulations suggest a laissez-faire approach, which is not indicative of a command economy, as regulation and control are prevalent. Lastly, the concept that supply and demand dictate pricing pertains to a market-based system and does not align with the principles of a command economy, in which the government sets prices instead.