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

Question

Quizplus · Accepted Answer

North Korea has a centrally planned economy, which means that the government is responsible for making fundamental economic decisions, such as what goods and services to produce and how they should be distributed. Individuals and firms do not have a significant role in making these decisions.

How Are the Fundamental Economic Decisions Determined in North Korea