Which of the following statements is consistent with central planning?
A) The economy relies heavily on the market mechanism to allocate resources.
B) Government planners play the dominant role in deciding how resources are allocated.
C) Economic decisions are made by large competitive firms.
D) Market prices are used to guide production and consumption activities.

Question

Quizplus · Accepted Answer

Central planning involves the government playing the dominant role in deciding how resources are allocated, which is consistent with statement B. The other statements are inconsistent with central planning as they rely heavily on market mechanisms and large competitive firms.

Which of the Following Statements Is Consistent with Central Planning