Is the task of effective central planning difficult?
A) It is not difficult because allocating resources is easier than ever with the microprocessing power of twenty-first-century computers.
B) It is not difficult because economic models and theory have become increasingly better at handling real-world complexities.
C) It is difficult because central planners have no way of knowing the value of a particular resource in all of its uses.
D) It is difficult, but only if the central planners are dedicated public servants and not self-interested politicians.

Question

Quizplus · Accepted Answer

The difficulty with central planning is that it is hard to accurately determine the value of a resource in all of its uses. This is because resources can have different values depending on the context in which they are used, and central planners do not have access to all of the information needed to make these determinations. While technology and economic theory have improved, this fundamental challenge remains.

Is the Task of Effective Central Planning Difficult