The issue with centrally planned systems like socialism is the central planner's inability to determine consumer preferences for resource allocation, leading to inefficiencies and limited market options.
One problem with a centrally planned economic system, such as socialism, is option b) The central planner will not be able to determine how consumers would prefer to have resources used in the production of goods and services. This results from the nature of a centrally planned economy where the government, instead of businesses and individuals, owns the means of production and thus decides what to produce, how to produce it, and who receives the final products. This process often leads to inefficiencies and limited choices in the marketplace, as well as higher prices due to a lack of competition. While socialist economies aim to benefit society and reduce inequality, they face trade-offs between equity and efficiency and can limit the free will of individuals within the system.