the government decides what to produce and how it will be produced...... true or false

Question

i mean i really don't know what to say on this part. i really just need answer to my questions that i ask

Answer 1

So, if we assume that whoever put together the question meant, by "the government", the government here in the US, or specifically in Virginia where Quasia is located, the answer would be "false". 

Answer 2

This is true of a command economy, that is an economy that is generally controlled almost entirely by the government. Examples include a Communist government. In a capitalist economy, there is significantly more freedom for both consumers and producers. While there may be some governmental limitations on price ceilings and floors, safety regulations, etc. for the most part, people can produce or consume nearly anything.