The correct answer is true.
It is true that in a command economy government committees make decisions about quantity manufactured prices and wages.
In a command economy, it is the state that has total control of the economy and the means of production. The government decides what to produce when to produce, the amount of production, and the price of the products. Workers receive flat wages and there are no incentives.
The opposite of a command economy is a market economy, in which the market decides what to sell and how much. Companies have the freedom to decide what to produce studying the consumers' necessities and workers can get productivity bonuses according to production.
