Which of the following is a feature of a planned economy? MCQ with Answer and Explanation

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Which of the following is a feature of a planned economy?

A. Price determination solely by market forces

B. Decentralised decision making

C. Private ownership of all resources

D. Centralised planning of resource allocation

Answer: Option D

Solution (By JKSSB Mock Tests)

In a planned (command) economy, the central authority plans and allocates resources according to predetermined objectives rather than market signals.

This question belongs to: Economy GK Economy Set 1

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Practice More Economy Set 1 Questions

Question #1

The 'countervailing duty' is imposed to countervail:

A. currency depreciation

B. foreign export subsidies

C. high tariffs

D. dumping

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Correct Answer: Option B

Explanation:
Countervailing duties offset foreign subsidies on exports.

This question belongs to: Economy GK Economy Set 1

Question #2

The concept of 'Precautionary Saving' arises because:

A. Individuals save more when future income is uncertain

B. Saving is independent of uncertainty

C. Individuals save only for retirement

D. Only permanent income matters

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Correct Answer: Option A

Explanation:
Precautionary saving is additional saving undertaken by risk-averse agents to buffer against future income or expenditure uncertainty.

This question belongs to: Economy GK Economy Set 1

Question #3

The 'industrial licensing' after 1991 was retained for certain industries related to:

A. textiles

B. security, strategic and environmental concerns

C. food processing

D. consumer goods

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Correct Answer: Option B

Explanation:
Licensing was retained for industries related to security, strategic and environmental concerns.

This question belongs to: Economy GK Economy Set 1

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