a. a command economy produces a small upper class that controls all of the profits businesses produce.\n\nb…

a. a command economy produces a small upper class that controls all of the profits businesses produce.\n\nb. a command economy reduces innovation by requiring all businesses to follow government orders.\n\nc. a command economy promotes corruption by removing government regulations on business.\n\nd. a command economy requires companies to produce only cheap consumer goods for poor citizens.

a. a command economy produces a small upper class that controls all of the profits businesses produce.\n\nb. a command economy reduces innovation by requiring all businesses to follow government orders.\n\nc. a command economy promotes corruption by removing government regulations on business.\n\nd. a command economy requires companies to produce only cheap consumer goods for poor citizens.

Answer

Brief Explanations:

To solve this, we analyze each option:

  • Option A: A command economy is government - controlled, but the idea of a “small upper class controlling all profits” is more characteristic of a capitalist system with extreme inequality, not a command economy. So A is incorrect.
  • Option B: In a command economy, the government makes production decisions. Businesses have to follow government orders, which limits their ability to innovate as they don't have the freedom to experiment with new ideas or products. This matches the nature of a command economy.
  • Option C: A command economy has strong government regulations, not the removal of them. The removal of government regulations is more associated with a free - market system, and corruption in a command economy would come from other sources, not the removal of regulations. So C is incorrect.
  • Option D: A command economy focuses on meeting overall economic and social goals set by the government, not just producing cheap goods for poor citizens. Production decisions are based on central planning for the whole economy, not this specific target. So D is incorrect.

Answer:

B. A command economy reduces innovation by requiring all businesses to follow government orders.