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.
85 exam-style questions on Edexcel A A Level Economics 1.1 Nature of economics, covering 1.1.1 Economics as a social science, 1.1.2 Positive and normative economic statements, 1.1.3 The economic problem, 1.1.4 Production possibility frontiers, 1.1.5 Specialisation and the division of labour, and 1.1.6 Free market economies, mixed economy and command economy. Each one has a worked solution and a mark scheme showing where the marks go.