Question

What is one advantage of a centrally planned economy?

A. low unemployment due to guaranteed jobs

B. high levels of consumer satisfaction

C. quick adjustment to changing conditions

D. incentives for workers have new ideas

Answer 1

A centrally planned economy is by definition an economy in which economic decisions are made by the government instead by the relationships between consumers and businesses. One advantage is that the state can maximize the land, labor, and capital to serve its goals. Answer then is A.