The central authorities, as participants in the economy, are defined as the unit that decides how to use labor, land, and capital.

Question

Quizplus · Accepted Answer

Central authorities, in the context of a centrally planned economy, do make decisions about the use of labor, land, and capital, but the definition provided describes the functions of an economic system more broadly, not specifically the role of central authorities. Central authorities are more accurately defined as the government or state bodies that make economic decisions in a centrally planned economy, rather than being a unit that decides how to use resources in all types of economies.

The Central Authorities, as Participants in the Economy, Are Defined