In a centrally planned economy, the ________ plans all the important activities in the economy.

Question

YESPYQ · Accepted Answer

Correct answer: c) Government. Centrally planned economy is a system in which the government makes economic decisions rather than the interaction between businesses and consumers. Government of a centrally planned economy decides when and where production and investment will be directed. This economy is also known as a command economy as prices are controlled by a centrally managed government. This economy is different from a market economy in which market decisions are taken by businesses and consumers. Hence, the correct answer is “Government”.

In a centrally planned economy, the ________ plans all the important activities in the economy.

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