Development Planning and Policy-making The State, And the Market

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Development Planning and Policy-making The State, And the Marketeconomics-mcqs › development-planning-and-policy-making-the-state-and-the-market
Published
2 Jun 2019
Last updated
28 May 2026

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In an economy governed by Soviet-style central planning, which statement best describes the movement of resources?

Multiple choice question for Development Planning and Policy-making The State, And the Market. Select an option, then review the explanation below.

Choose the correct answer

Explanation

In a Soviet-type centrally planned economy, most resources are restricted and cannot move freely to their most valuable uses. Unlike market economies, resource allocation is controlled by the state rather than guided by cost efficiency or private ownership.

Practice related questions from the same subject.

  1. 1.In less developed countries, which issue prompted the emergence of a state-led planning approach as a response to nationalist views?
  2. 2.Which set of assumptions inherent in input-output analysis calls into question its overall validity?
  3. 3.According to Branko Horvat's historical analysis of the past 250 years, what has been the general outcome of market-based or decentralized socialism?
  4. 4.Which economic system, developed by Polish economist Oskar Lange, integrates the benefits of market allocation with equitable income distribution by sharing the profits from socially owned nonhuman productive assets among all citizens?
  5. 5.In most mixed or capitalist developing nations, what is the nature of an indicative plan that outlines goals and intentions?

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