Statement I: In a centrally planned economy,consumers do not have to consider prices when shopping.
Statement II: In a capitalist economy the three basic economic questions (what,how and for whom)are determined by the price mechanism.

Question

Quizplus · Accepted Answer

In a centrally planned economy, prices are usually set by the government, but consumers still need to consider prices when shopping because there may be shortages of certain goods and services. In a capitalist economy, prices serve as signals to allocative efficiency, determining what gets produced, how much gets produced, and who gets to consume those goods and services. Therefore, statement II is true, while statement I is false.

Statement I: in a Centrally Planned Economy,consumers Do Not Have