119k views
5 votes
You live in a planned economy and want to open a business. The _____ decides how to allocate the productive resources.

A) central authority
B) market

User MatterGoal
by
7.8k points

2 Answers

4 votes
a planned economy is something along the lines of communism or socialism so the centeral authourity will decide how to allocate resources 
User Jianping
by
8.4k points
3 votes

You live in a planned economy and want to open a business. The central authority decides how to allocate the productive resources.

A planned economy is whenever the government decides on production, prices, and investments, therefore having control of how resources are allocated. The idea of a planned economy is that it follows a plan of growth and therefore the government sees a necessity to control the economy. In a planned economy, the market does not play a role in the production or prices of goods. Nevertheless, a planned economy is not the same as a command economy. In a command economy, there is no private industry, since the industry is publicly owned.




User Gera
by
8.4k points