Paper 1 · November 2021 · Economic Systems
Under a capitalist economic philosophy, the decision on what a country produces is made by
Aa state marketing board
Bthe price mechanism
Ca national development plan
Da central planning authority
Explanation
Capitalism leaves the factors of production in private hands and lets the forces of demand and supply, working through prices, decide what is made and for whom. Planning authorities, marketing boards and national plans are the tools of a command economy, where the state makes those decisions instead.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2021, Q1