How are the fundamental economic decisions determined in a centrally planned economy?
A) the government decides
B) individuals, firms, and the government interact in a market to make these economic decisions
C) these decisions are made by the country's elders who have had much experience in answering these questions
D) the United Nations decides

Question

Quizplus · Accepted Answer

In a centrally planned economy, the government makes all the fundamental economic decisions regarding the allocation of resources, what goods and services are produced, how they are produced, and who gets them. This contrasts with market economies, where these decisions are made through the interactions of individuals and firms in the market.

How Are the Fundamental Economic Decisions Determined in a Centrally