In a centrally planned economy, the economic problem of deciding what to produce is dependent...
ECONOMICS
JAMB 2002
In a centrally planned economy, the economic problem of deciding what to produce is dependent on?
- A. average profit
- B. state command
- C. average cost
- D. relative prices
Correct Answer: B. state command
Explanation
A centrally planned economy, also known as a command economy, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products.
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