Question

6.Which statement applies to all centrally-planned economies?

A) the government places much emphasis on the production of consumer products.
B) the government encourages workers to innovate.
C) the government makes all important economic decisions.
D) the government builds every house in every village.

Answer 1

Answer: C) the government makes all important economic decisions.

A centrally planned economy is an economic system in which the government makes all important economic decisions rather than leaving them to consumers and businesses.

In these type of economy, prices are all controlled, the government sets plans, and the economy is handled by bureaucrats.