A modified command economy is often characterized by high taxes and state-driven production, but the government does allow for some private business. Therefore, the option C holds true.
What is the significance of a modified command economy?
A modified command economy can be referred to or considered as an economy where the government holds not complete but substantial powers in managing the functioning of the economy. A modified command economy is completely in contrast to a mixed economy.
A command economy is normally under the state administration, and as a result of the same, the taxation rates are typically higher. There is a very little involvement of private enterprises in production in such an economy.
Therefore, the option C holds true and states regarding the significance of a modified command economy.
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