In a command economy, prices may be determined by _____.

In a command economy, prices are determined by a central planning committee, which is a characteristic feature of this type of economic system. In such economies, the government or a centralized agency makes all decisions regarding the production and distribution of goods and services, including pricing. The rationale behind this is that the central authority seeks to achieve specific economic goals, such as equitable distribution of resources or achieving full employment, rather than allowing market forces to dictate prices.

Central planners assess various factors such as production costs, availability of resources, and social needs to set prices, in contrast to market economies where prices are influenced by supply and demand dynamics. By controlling prices, the central planning committee aims to stabilize the economy and direct it according to planned objectives, which can lead to price-setting that does not necessarily reflect consumer preferences or the inherent value of goods. This organizational structure fundamentally differentiates command economies from market economies, where individual consumers and producers interact to establish prices through voluntary exchanges.