1.1.6 Free market economies, mixed economy and command economy

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Question 9
Easy

Which one of the following statements about a command (centrally planned) economy is true?

It relies on the price mechanism to allocate scarce resources.

It was strongly advocated by free-market economist Adam Smith.

The state determines what, how, and for whom to produce.

There is typically a high level of consumer sovereignty.

1.1.6 Free market economies, mixed economy and command economy Questions

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