The government controls factories and other forms of production (answer D) is correct since government control over the means of production is essential to the definition of a centrally planned economy.


Socialism, communism, and all other ideologies, which rely on planned production, gain control of economic cornerstones, such as factories, farms, and mines to secure the proper execution of their drafted programs. Conversely, answers A and C are rather characteristics of market or mixed economies, while answer B is only an additional means of management in a planned economy.

The historical standoff of capitalism vs. socialism brings to light both advantages and disadvantages of command economies. For example, it contrasts the efficient development of industry with the minimal choosing power that citizens may exercise.

Five Characteristics of a Command Economy.
What Makes a Command Economy? (Source: https://www.thebalance.com)