When the government makes decisions that determine allocations of raw materials, set product output quotas, and regulate wages and prices, the nation is operating under:
A) a free-market economy.
B) conditions of free government control.
C) a central-planning economy.
D) a domestic economy.
E) poor government conditions.

Question

Quizplus · Accepted Answer

This describes a central-planning economy, where the government makes all decisions regarding the economy, including allocations of resources, production quotas, and regulation of wages and prices.

When the Government Makes Decisions That Determine Allocations of Raw