Paper 1 · Economic Systems
An economy in which the means of production are privately owned and resources are allocated by the price mechanism is a
Asubsistence economy
Bcapitalist economy
Ccommand economy
Dplanned economy
Explanation: Under capitalism, private individuals own the factors of production and the profit motive, working through the prices set by supply and demand, decides what is produced and for whom. Command and planned economies are the same thing under two names, with the state making those decisions instead.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2018, Q1