What defines a planned economic system?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

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An economy where economists oversee production activitiesA system where the government manages the production and allocation of resourcesAn economy controlled by technical experts in production decisionsA system where the government regulates the distribution of goods

Explanation

Option A is correct because a planned economy is characterized by economists directing production. Other options describe different aspects but do not fully capture the role of economists in controlling production within a planned economy.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What defines a planned economic system?

Explanation

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