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In+a+planned+economy,+prices+of+commodities+are+controlled+by+_________.+A.+Supply+and+demand+B.+Producers+and+consumers+C.+The+government+D.+Private+enterprises

1 Answer

6 votes

The correct answer is C. The government

Step-by-step explanation:

A planned economy implies the government controls and regulates multiple aspects of the economy of a country. This is the opposite of a market economy in which supply and demand are the factors that determine production, prices, etc that vary over time. Instead in a planned economy, the government determines most aspects of the economy including the prices of goods and services. This economy is commonly connected to a socialist ideology in which the means of production are owned by society rather than by particular individuals. According to this, in a planned economy, prices of commodities are controlled by the government.

User Aleh Maksimovich
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