9 EMS: Planned Economy

Front

Who makes most of the basic decisions in a centrally planned economy?

Back

Government

Front

What is one reason centrally planned economies tend not to be efficient?

Back

Workers lack the incentive to work harder.

Front

True or False: Government controls the factors of production in a planned economy.

Back

True

Front

True or False: In a planned economy consumers and entrepreneurs make the decisions on what goods and services are produced.

Back

False

Front

True or False: An advantage of a planned economy is that citizens have everything they need and no one lives in absolute poverty.

Back

True

Front

True or False: In a planned economy there is not a big difference in the standard of living (between the rich and the poor)

Back

True

Front

True or False: A disadvantage of a planned economy lies in the fact that government may struggle to make good economic decisions for all.

Back

True

Front

Another term for a centrally planned economy is...

Back

command.

Front

The system a country uses to solve the problem of scarcity and to answer the economic questions is known as its...

Back

economic system.

Front

True or False: In a planned economy, the government sets the prices for goods and services.

Back

True