In a centrally planned economy, individuals have complete freedom to start and run any business without government involvement. In a mixed economy, both the government and private... In a centrally planned economy, individuals have complete freedom to start and run any business without government involvement. In a mixed economy, both the government and private businesses play a role in economic decisions. In a centrally planned economy, the government has minimal control over business activities, and prices are set by supply and demand. Evaluate these statements and indicate whether they are true or false.
Understand the Problem
The question is asking us to evaluate statements regarding different types of economic systems (centrally planned, mixed) and determine their truthfulness. We will analyze each statement based on the characteristics of these economies.
Answer
All statements are false.
The statements are false. In a centrally planned economy, the government controls business activities and sets prices, not individuals. In a mixed economy, both the government and private sector are involved in economic decisions.
Answer for screen readers
The statements are false. In a centrally planned economy, the government controls business activities and sets prices, not individuals. In a mixed economy, both the government and private sector are involved in economic decisions.
More Information
In a centrally planned economy, government decision-making replaces market forces. A mixed economy combines these government elements with free-market principles to balance efficiency with social welfare.
Sources
- Centrally Planned Economy: Features, Pros & Cons, and Examples - investopedia.com
- Command vs. Mixed Economy: What's the Difference? - investopedia.com
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