In a planned economy, who is primarily responsible for regulating economic activity?

• A. International organizations
• B. The government
• C. Private individuals
• D. Market forces

Answer: (B)

Verified step by step guidance

1. Understand the context of a planned economy: In a planned economy, economic activity is controlled and directed by a central authority rather than by market forces or private individuals.
2. Identify the key players in different economic systems: In market economies, private individuals and market forces regulate economic activity, while in planned economies, the government takes on this role.
3. Recognize the role of international organizations: These organizations may influence or support economies but do not directly regulate economic activity in a planned economy.
4. Conclude that in a planned economy, the government is primarily responsible for regulating economic activity by making decisions about production, distribution, and resource allocation.
5. Therefore, the correct answer is that the government regulates economic activity in a planned economy.