Answer: D. The government controls factories and other forms of production.
A command economy is a kind of economic system in which the government is the center stage of all economic activities. In other words, they play a major role in influencing the economy. The levels of production permissible, the prices of goods and services, and all decision-making is dictated by the central government. A command economy is the opposite of a free market system.
In a government, the means of production are owned and controlled by the state. This is the reason a socialist government will be the main practitioner of a command economy. Some countries with command economies are North Korea, Cuba, and the former Soviet Union. There is no private sector in a command economy, private ownership of land and capital does not exist, as the government owns and controls all forms of businesses in the region. Most countries today practice a mixed market economy.