Question

Consider the following economic​ agents:

a. the government
b. consumers
c. producers ​
Who, in a centrally planned​ economy, decides what goods and services will be produced with the scarce resources available in that​ economy?

Answer 1

The correct answer is option a.

Step-by-step explanation:

A centrally planned economy is a system in which a central agency such as the government takes all the economic decisions. The government decides the allocation of resources, what to produce, how to produce, the price level, etc.

Such a system is contrary to a market economy where the market forces determine the price, quantity, etc.

The government, in a centrally planned economy, will determine the allocation of scarce resources to produce goods and services, not producers or consumers.