Which statement regarding command economies is FALSE?

The government owns the factors of production.

Central planners decide what is produced.

Self-interest influences the decisions made about production.

Consumer goods are in short supply.

The correct answer is letter "C": Self-interest influences the decisions made about production.

Explanation:

A command economy is one where the government controls the economy, acts as a central planner, dictates production quotas and distribution levels, and sets prices. Such economies exist in communist or socialist states such as China, North Korea, and Cuba.

In a command economy, the government almost exclusively owns the means of production controlling the supply of output, most of the time leading to shortages.

The government does not own the factors of production. That is the false statement