19. In which of the following types of economic systems does a central government authority determine the allocation of resources?
Answer: B
In a command economic system, a central government authority determines the allocation of resources.
In a command economic system, the government makes all decisions regarding the production and distribution of goods and services, effectively controlling resource allocation.
A) Traditional
A traditional economic system is based on customs, history, and time-honored beliefs. Resource allocation in this system is determined by social customs and practices rather than by a central authority, making it incorrect for the question asked.
B) Command
A command economic system is characterized by centralized control where the government makes all significant economic decisions. This option is correct as it explicitly describes a system in which resource allocation is determined by a central authority.
C) Market
In a market economic system, resource allocation is determined by the forces of supply and demand with minimal government intervention. Since this system relies on individual choices rather than a central authority, it is not applicable to the question.
D) Capitalist
A capitalist economic system emphasizes private ownership and market competition, where resource allocation is primarily determined by individuals and businesses rather than a central government authority. Thus, this option does not align with the requirements of the question.
Conclusion
The command economic system clearly defines a scenario where a central government authority controls resource allocation, making it the correct choice. The other options, including traditional, market, and capitalist systems, either rely on customs, market forces, or individual decisions, which do not fit the criteria of centralized control.