In a centrally planned economy, the economic problem of deciding what to produce is dependent on?
-
A.
average profit -
B.
state command -
C.
average cost -
D.
relative prices
Correct Answer: Option B
Explanation
A centrally planned economy, also known as a command economy, is an economic system in which a central authority, such as a government, makes economic decisions regarding the manufacturing and the distribution of products.