Paper 3 · economic systems: planned economy
In a planned (command) economy, decisions about what, how, and for whom to produce are made primarily by...
Athe central government's planning authority, guided by the state's social and political priorities.
Bthe interaction of market supply and demand for goods and services in a competitive marketplace.
Cindividual consumers, who signal their wants directly to producers through market prices.
Dprivate firms and entrepreneurs, competing with each other to maximise their own profit.
Explanation: A defining feature of a planned economy is that the state, not the price mechanism, allocates resources and directs production according to central planning targets and social priorities.
Derived from ZIMSEC Economics Paper 3, June 2004, Q1
