Centrally planned economies are not constrained by the problem of scarcity.

Question

Quizplus · Accepted Answer

Centrally planned economies, like any other economic system, have to deal with the problem of scarcity. They still have to make choices about what to produce, how to produce it, and for whom. The difference is that in a centrally planned economy, these choices are made by a central authority rather than through the interaction of individuals and markets.

Centrally Planned Economies Are Not Constrained by the Problem of Scarcity