Government’s primary role in a central planning economy is the maintenance of law and order.A. TrueB. False
Question
Government’s primary role in a central planning economy is the maintenance of law and order.
- A. True
- B. False
Solution
Analyzing the Statement
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Understanding Central Planning Economy: In a centrally planned economy, the government typically has significant control over economic activities, including production, distribution, and prices of goods and services.
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Role of Government: The primary role of the government in such an economy goes beyond just maintaining law and order; it involves making economic decisions that affect the entire economy, regulating industries, and ensuring the equitable distribution of resources.
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Interpreting the Statement: The statement claims that the government's primary role is limited to maintenance of law and order, which is more characteristic of a market economy than a centrally planned one.
Conclusion
Given that the government's role in a central planning economy encompasses more than just maintaining law and order, the correct answer is:
B. False.
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