What does a planned economy rely on a centralized government to do?
A) Support free enterprise in every way possible
B) Determine how to allocate all or most factors of production
C) Encourage citizens to buy shares of stock in small companies
D) Keep its control activities to a minimum
E) Direct workers to start their own small businesses

Question

Quizplus · Accepted Answer

In a planned economy, the government decides how to allocate resources and factors of production to meet the needs of society. This requires a centralized government to have control and direct decision-making power over the economy.

What Does a Planned Economy Rely on a Centralized Government