John is an employee at a car manufacturer. Today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. John doesn't mind, because although his wages are low, he gets paid whether there is any work for him to do or not. John MOST likely lives in a ________.

Question

Quizplus · Accepted Answer

In a planned economy, the government has a central role in determining what goods and services will be produced and how resources will be allocated. Therefore, it is likely that the government would make a decision like the one described in the scenario, and John's secure employment despite lack of production suggests that he is part of a government-run industry.

John Is an Employee at a Car Manufacturer