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A socialist economy is also commonly described by which alternative name?
ALaissez-faire economy
BCentrally planned economy
CFree-market economy
DProfit-driven economy
Answer & Solution
Correct answer: B. Centrally planned economy
1. In socialism resources are allocated by commands of a central planning authority.
2. Because of this it is called a command or centrally planned economy.
3. So 'centrally planned economy' is the correct alternative name.
4. Laissez-faire, free-market and profit-driven all describe capitalism, eliminating them.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 1 Unit II "Basic Problems of an Economy and Role of Price Mechanism", p.5_
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