ECONOMICS
PROPERTY RIGHTS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
There are no private property rights in the economy.
|
|
|
Income distribution is relatively even in the economy.
|
|
|
The problem of scarcity does not exist in the economy.
|
|
|
Most resources of the economy are owned by the state.
|
Detailed explanation-1: -One of the main characteristics of the planned economy is that the government has ownership over all the resources. Other features of a planned economy are: Important decisions such as what to produce, how to produce and how to distribute goods or services are taken by the government.
Detailed explanation-2: -Following are some of the significant characteristics exhibited: Favor collective ownership and disfavor private ownership. The government controls factors of production. The government controls pricing, production, and distribution.
Detailed explanation-3: -A command economy, also known as a planned economy, is one in which the central government plans, organizes, and controls all economic activities to maximize social welfare. Command economies, as opposed to free-market economies, do not allow market forces like supply and demand to determine production or prices.
Detailed explanation-4: -The government creates a central economic plan. The government allocates all resources according to the central plan. The central plan sets the priorities for the production of all goods and services. The government owns monopoly businesses. More items
Detailed explanation-5: -Ownership by government. Decisions on what to produce, how to produce and how to distribute goods taken at national bureaucratic level. Prices usually set by price controls rather than market forces. Distribution according to ration books. More items