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

Resource allocation in different economic systems — practice question

In a centrally planned economy, free market forces are given a major role in deciding how economic resources are distributed. What is most likely to happen in the short run?

  • Aan improvement in the balance of trade
  • Ban increase in the general level of prices
  • Can increase in the level of employment
  • Dan increase in the level of output

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