Paper 3 · June 2004 · Economic Systems
In a planned (command) economy, decisions about what, how, and for whom to produce are made primarily by...
Aindividual consumers, who signal their wants directly to producers through market prices.
Bprivate firms and entrepreneurs, competing with each other to maximise their own profit.
Cthe central government's planning authority, guided by the state's social and political priorities.
Dthe interaction of market supply and demand for goods and services in a competitive marketplace.
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