Which term describes an economy where the government makes all the economic decisions?

A command economy is one in which the government has complete control over the economic decisions regarding production, distribution, and the prices of goods and services. This system contrasts with a market economy, where decisions are made based on supply and demand dynamics and consumer preferences.

In a command economy, the government typically determines what to produce, how much to produce, and who receives the products. This central planning can lead to various outcomes, including a focus on specific industries or sectors deemed crucial for the country's goals, which may not always align with consumer needs or preferences.

The other options represent different economic systems. A market economy relies on individual decisions and market forces, a mixed economy combines elements of both market and command economies, and a traditional economy is based on customs and traditions to determine production and distribution methods. These distinctions highlight how a command economy, through governmental control, differs fundamentally from other systems in guiding economic activities.