Economics (AS & A Level) · May / June 2026 · Paper 13 · Question 5
9708Resource allocation in different economic systems
What would most likely be considered an advantage by producers and a disadvantage by consumers of the operation of a planned economy?
- Aa bureaucratic system of decision-making
- Ba government emphasis on the production of capital goods
- Ca long response time to changing economic events
- Dan absence of financial incentives to work and to produce
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Correct answer: B. a government emphasis on the production of capital goods
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