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

Resource allocation in different economic systems — practice question

What is the principal feature of a planned economy?

  • AAll goods and services are produced by privately-owned firms.
  • BAll goods and services are produced by state-owned firms.
  • CPrivately-owned firms produce private goods and state-owned firms produce public goods.
  • DThe price mechanism allocates scarce resources through the actions of buyers and sellers.

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