In a centrally planned economy

A) consumers do not have to consider prices when shopping.
B) prices are zero.
C) the government sets prices and decides how much of each good is to be produced.
D) producers have an incentive to produce those goods most desired by consumers at the lowest cost.

Centrally Planned Economy

An economic system where the government makes all decisions on the production and distribution of goods and services.

Government Sets Prices

A practice where the government actively intervenes to control and set the prices of certain goods and services, often to stabilize the economy or protect consumers.

Consumers

Individuals or groups who purchase goods and services for personal use or consumption.