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

Resource allocation in different economic systems — practice question

Which statement regarding the behaviour of firms in a planned economy is correct?

  • AFirms are sent signals to produce through the price mechanism.
  • BFirms will operate in competitive markets.
  • CFirms will attempt to make profits for the benefit of shareholders.
  • DFirms are more likely to consider the private and external costs of production.

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