Question

In a socialist economy, the central planning authority takes decisions to solve which of the following problems of the economy?

• A. What to produce
• B. How to produce
• C. For whom to produce
• D. All of the above

Answer 1

The correct option is D All of the above

In a socialist economy, the central problems of the economy is solved by a centrally based planning authority that resolves all the centrally based problems related to production of goods and services in the economy which includes the following

• What to produce? Consumer goods or capital goods?
  
• How to produce? Using labour or capital?
  
• For whom to produce? Rich people or poor people?