The decision about what goods and services will be produced in a centrally planned economy is made by
A) producers deciding what society wants most.
B) lawmakers in the government deciding on what will be produced.
C) consumers dictating to firms what they need most.
D) workers deciding to produce only what the boss says must be produced.
E) consumers and firms choosing which goods and services to buy or produce.
B
You might also like to view...
Consider a factory that emits chemicals into a river, thus polluting the water supply of a downstream community. The Coase Theorem states that the socially optimal, or efficient, solution can be achieved by assigning property rights to _____________________.
a. the company. b. the community. c. the company and the community, jointly. d. the company or the community. e. a government regulator.
Explain through the component parts of aggregate demand why the aggregate demand curve slopes down with respect to the inflation rate. Be sure to discuss two channels through which changes in inflation rates affect demand
What will be an ideal response?