Economics (AS & A Level) · May / June 2022 · Paper 12 · Question 2
9708Resource allocation in different economic systems
What is the main characteristic of a planned economy?
- AAll goods and services are produced by privately-owned firms.
- BAll goods and services are produced by state-owned firms.
- CPrivately-owned firms produce private goods and state-owned firms produce public goods.
- DThe price mechanism allocates scarce resources through the actions of buyers and sellers.
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Correct answer: B. All goods and services are produced by state-owned firms.
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