State planners in country A met to decide what country should focus on producing.After much deliberation,they decided it would be the country's best interest to use their limited resources to produce automobiles instead of other consumer goods,such as electronics or textiles.The state planners passed their decision down to factories,and allocated to them raw materials,workers,and other resources needed to produce automobiles.Factories were then told how much they should produce with these resources and who the final products should be shipped to.What type of economic system is this? How would you know?
State planners in country A met to decide what country should focus on producing.After much deliberation,they decided it would be the country's best interest to use their limited resources to produce automobiles instead of other consumer goods,such as electronics or textiles.The state planners passed their decision down to factories,and allocated to them raw materials,workers,and other resources needed to produce automobiles.Factories were then told how much they should produce with these resources and who the final products should be shipped to.What type of economic system is this? How would you know?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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State planners in country A met to decide what country should focus on producing.After much deliberation,they decided it would be the country's best interest to use their limited resources to produce automobiles instead of other consumer goods,such as electronics or textiles.The state planners passed their decision down to factories,and allocated to them raw materials,workers,and other resources needed to produce automobiles.Factories were then told how much they should produce with these resources and who the final products should be shipped to.What type of economic system is this? How would you know?
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