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
8.0k 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
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.