A-LevelEconomicsBasic economic ideas and resource allocation9708/12 · May/June 2022 · Q21 Mark
What is the main characteristic of a planned economy?
AAll goods and services are produced by privately-owned firms.
BAll goods and services are produced by state-owned firms.
CPrivately-owned firms produce private goods and state-owned firms produce public goods.
DThe price mechanism allocates scarce resources through the actions of buyers and sellers.
✓ Correct answer
B: All goods and services are produced by state-owned firms.
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