Paper 3 · November 2003 · Economic Systems
In a planned (command) economy, decisions about what to produce, how to produce it, and for whom it is produced are made primarily by...
Aconsumer sovereignty expressed through spending decisions.
Ba central planning authority following a national economic plan.
Cthe price mechanism responding to changes in supply and demand.
Dindividual firms competing with each other for profit.
Explanation
In a command economy, a central planning authority, not price signals or competing firms, decides resource allocation according to a national plan, which is the defining feature that distinguishes it from a market economy.
Derived from ZIMSEC Economics Paper 3, June 2004, Q1