ECONOMICS
SCARCITY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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more centralized planning in economic decision making
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consumer sovereignty to make production decisions
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its resources more efficiently
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price signals in economic decision making
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the popular vote in making resource allocation decisions
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Detailed explanation-1: -Key Takeaways Market economies utilize private ownership as the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production and set prices and production schedules.
Detailed explanation-2: -A centrally planned economy, also known as a command economy, is an economic system where a government body makes economic decisions regarding the production and distribution of goods.
Detailed explanation-3: -A centrally planned economy is the one in which economic activities (production, consumption and exchange) are governed by the government. Market economy is the one in which economic activities (production, consumption and exchange) are governed by the market forces of supply and demand. Was this answer helpful?
Detailed explanation-4: -A command economy is a system in which a central government makes all economic decisions. Either the government or a collective owns the land and the means of production.