ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Businesses decide what to produce on the basis of market conditions.
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Consumers decide through their behavior in the marketplace.
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Supply and demand control production and price.
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Central government planning decides what will be produced.
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Detailed explanation-1: -A centrally planned economy or a command economy is one where the price and allocation of resources, goods and services is determined by the government rather than autonomous agents as it is in a free market economy.
Detailed explanation-2: -Government Controls Production in Command Economy The government decides the means of production and owns the industries that produce goods and services for the public. The government prices and produces goods and services that it thinks benefits the people.
Detailed explanation-3: -In a command economy, the central government dictates the level of production of goods and controls their distribution and prices. Proponents of command economies argue government control rather than private enterprise can ensure the fair distribution of goods and services.
Detailed explanation-4: -The central feature of a pure command economy is government control. Rather than letting market forces dictate the production of goods and services, the government determines economic priorities and controls production and pricing.
Detailed explanation-5: -The production of goods and services in planned economies is often done by state-owned enterprises, although independent companies may sometimes be incorporated into economic planning. Prices, wages, and production schedules are typically set by a centralized bureaucracy.