In a Planned Economy

question 129

Multiple Choice

In a planned economy,

• A)prices are used to coordinate economic activity.
• B)central planners set production targets and tell producers how to produce.
• C)high prices discourage use of the most scarce resources.
• D)central planners allow the price to determine distribution of a product.

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Definitions:

Science

The systematic study of the structure and behavior of the physical and natural world through observation and experiment.

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The application of scientific knowledge for practical purposes, especially in industry.

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A systematic approach involving stages of idea generation, development, and commercialization to introduce new products, services, or methods.