Western Governors University (WGU) BUS2070 D080 Managing in a Global Business Environment Practice Exam

In a command economy, the ownership of resources is centralized, typically managed by the government or a ruling authority that directs economic activity. This means that all means of production, including land, labor, and capital, are owned and controlled by the state. The ruling class, which can refer to the officials in government or party leadership, makes decisions about production, distribution, and consumption of goods and services.

The emphasis in a command economy is on state planning and resource allocation aimed at achieving specific economic and social goals, rather than the market-driven approach found in capitalist economies. This centralized control contrasts sharply with private ownership, where individuals or commercial businesses would manage resources based on market dynamics and their personal interests. Thus, recognizing the ruling class as the entity that owns resources helps to understand the broader implications of governance and economic structures within a command economy.