Economics 9708 · AS & A Level · Resource allocation in different economic systems

Resource allocation in different economic systems — practice question

What is most likely to be seen as an advantage for producers and a disadvantage for consumers in a planned economy?

  • Aa bureaucratic system of decision-making
  • Ba government emphasis on the production of capital goods
  • Ca long response time to changing economic events
  • Dan absence of financial incentives to work and to produce

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