Answer:
This statement is true.
Step-by-step explanation:
A centrally planned economy is a system in which all economic decision making is done by the government. The government controls what is to be produced, in which numbers and how the final products should be distributed. There is little or none private ownership and citizens are not allowed to question the government and its decisions.
Therefore, there is little incentive to improve the economy because:
- it is all in hands of the government and the government adjusts the economy according to its needs and liking,
- private citizens do not have a say in economic matters,
- the economy and the state of it is used as a weapon to induce obedience and control on the country's citizens.