In a planned economic system, which assets are state-owned and allocated by directives?

In a planned economic system, which assets are state-owned and allocated by directives?

• A. Land and capital
• B. Labor
• C. Skills
• D. Services

Answer: (A)

In a planned economy, the government owns the main resources used to produce goods and services and decides how they will be used through a central plan. The assets that fit this description are land and capital. Land covers natural resources and land itself, while capital includes factories, machinery, and infrastructure—things the state can own and direct the use of. The government issues directives to allocate these resources to meet planned targets. Labor, skills, and services aren’t assets owned by the state in the same way. Labor is the workforce that people sell their time to provide; skills are individual abilities of workers; and services are the outputs produced, often using the land and capital under some plan. So the assets that are state-owned and allocated by directives are land and capital.

In a planned economy, the government owns the main resources used to produce goods and services and decides how they will be used through a central plan. The assets that fit this description are land and capital. Land covers natural resources and land itself, while capital includes factories, machinery, and infrastructure—things the state can own and direct the use of. The government issues directives to allocate these resources to meet planned targets.

Labor, skills, and services aren’t assets owned by the state in the same way. Labor is the workforce that people sell their time to provide; skills are individual abilities of workers; and services are the outputs produced, often using the land and capital under some plan. So the assets that are state-owned and allocated by directives are land and capital.