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Describe the allocation of resources in a planned economy.

Block Type

Knowledge Checkpoint

Knowledge checkpoint: Answer these actual Higher Economics exam questions:

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Describe the allocation of resources in a planned economy. (Worth 2 marks)

decisions about the allocation of scarce resources are taken centrally/resources are allocated by means of government plans (1)
resources are allocated for the benefit of the state rather than individuals (1)
not allocatively efficient (1)
sometimes planners fail to make accurate predictions, which can result in shortages/gluts (1)

(From 2023 Higher Economics Q2(f))