In a centrally planned economy, the question of what and how much to produce is decided by:
Athe stock exchange
Bindividual buyers alone
Cthe government (central authority)
Dforeign firms
Answer & Solution
Correct answer: C. the government (central authority)
In a centrally planned economy the government decides what and how much to produce.
Keep practising Macroeconomics: Income, Budget & Banking
Browse all Macroeconomics: Income, Budget & Banking questions for AP Intermediate 1st Year, or explore more Economics topics.
Related questions
Micro or macro?An economy that combines features of both market and government decision-making is a:Economics is broadly studied under the two branches of:Spot the odd one outThe economist whose work 'The Wealth of Nations' makes him widely regarded as the father oModern macroeconomics emerged largely from the work of the economist:The fundamental economic problem that gives rise to all economic activity is:In a capitalist economy, the central economic decisions are guided primarily by: