In a Marxist economy, which force primarily dictates economic decisions?

• A. Market supply and demand
• B. Consumer preferences
• C. Profit maximization by private firms
• D. Central planning by the state

Answer: (D)

Verified step by step guidance

1. Understand the context of the question: it asks about the primary force dictating economic decisions in a Marxist economy.
2. Recall the key characteristics of a Marxist economy, which is typically characterized by collective ownership of the means of production and the absence of private profit motives.
3. Identify that in a Marxist economy, economic decisions are not driven by market forces such as supply and demand or consumer preferences, nor by profit maximization by private firms.
4. Recognize that instead, economic decisions are primarily dictated by central planning authorities, usually the state, which allocates resources and plans production according to societal goals.
5. Conclude that the correct answer is 'Central planning by the state' because it reflects the fundamental mechanism of decision-making in a Marxist economic system.