Podcast
Questions and Answers
Which of the following best describes economic planning?
Which of the following best describes economic planning?
- A method to determine the value of goods and services in an economy.
- A process of setting goals and making decisions for the allocation of resources in an economy. (correct)
- A strategy to maximize profit in a free market economy.
- A system where the government controls all aspects of the economy.
What is the main purpose of economic planning?
What is the main purpose of economic planning?
- To ensure efficient allocation of resources. (correct)
- To eliminate competition in the market.
- To maximize government control over the economy.
- To promote individual profit-making.
Which statement is true about economic planning?
Which statement is true about economic planning?
- It can be practiced in both market and command economies. (correct)
- It is only applicable in socialist economies.
- It is primarily focused on individual profit-making.
- It leads to inefficiency and lack of innovation.