Which statement best compares a traditional economy and a command economy?
Economic decisions are based on tradition and culture in a traditional economy, while trade is limited to barter in a
command economy.
Individuals have little control of economic decisions in a traditional economy, while the government owns all of the
resources in a command economy.
Methods for farming, hunting, and gathering change little over time in a traditional economy, while there is no
competition to produce goods and services in a command economy.
Economic decisions are made by the government in a traditional economy, while the government sets the prices of
goods and services and distributes them in a command economy.

''Economic decisions are made by the government in a traditional economy, while the government sets the prices of goods and services and distributes them in a command economy'', is the statement that best compares a traditional economy and a command economy. Therefore, the option D holds true.

What is the significance of a command economy?

A command economy can be referred to or considered as an economy, which is completely in contrast to a traditional economy in the society, and this is because a command economy is not completely under the government control.

Government only mentions or suggests the set of practices to be performed and looks after their distribution in an economy, which is completely unlike a traditional economy where the entire decisions of an economy are taken by the government authorities.

Therefore, the option D holds true and states regarding the significance of a command economy.

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