What would reduce the role of central planning in a economy ?
Correct answer: C. Increasing the role of markets
- A. Increasing government spending
- B. Increasing public ownership of firms
- C. Increasing the role of markets
- D. Removing the profit motive
Explanation
Central planning allocates resources through government decisions, whereas markets coordinate production through prices and private choices. Therefore, expanding the role of markets reduces reliance on central planning.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
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.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
What does price elasticity of demand measure ?
According to the law of demand. When ?
A tariff______________?
Who is a "Lame Duck" in a stock market ?
Which company holds the world record for having the maximum number of shareholders ?
With whom would you associate the following quote" The business of business is business" ?