In what kind of economy does the government make all the decisions?

A command economy is characterized by extensive government control over economic activity, where the government makes all the significant decisions regarding production, resources, and the distribution of goods and services. This system often involves central planning, with authorities determining what to produce, how much to produce, and at what prices goods should be sold.

In contrast, a mixed economy combines elements of both command and market economies, allowing for some level of private enterprise along with governmental decision-making. A free market economy relies on individual choices and market forces to dictate production and distribution without government intervention. Meanwhile, a traditional economy is based on customs and traditions, where economic roles are typically passed down through generations, often with little variation from established practices. Therefore, the distinctive feature of a command economy is the government's role as the primary decision-maker in economic matters.