In a planned or command economy, all the economics decisions are taken by the ?
Correct answer: C. government
- A. Consumers
- B. voters
- C. government
- D. Workers
Explanation
In a command economy, a central authority makes the major decisions about what to produce, how to produce it, and for whom. That authority is the government rather than consumers, voters, or individual workers.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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