Planned Economies Prioritize State Control Over Profit

Steps:

• Recall that a planned economy features central government control over production, resources, and distribution to meet societal needs.
• Evaluate each option against this definition: check if it aligns with government planning or contradicts it.
• Identify the option that introduces market-driven elements like profit, which are absent in planned systems.
• Confirm by noting planned economies suppress competition and consumer choice in favor of state directives.

Why B is correct:

• In a planned economy, output increases to fulfill government-set quotas and social goals, not profit motives, as defined by central planning systems like those in Soviet-style socialism.

Why the others are wrong:

• A is correct: Production follows state plans, limiting consumer influence on goods.
• C is correct: Government ownership of resources is a core feature to enable central control.
• D is correct: Limited competition arises because the state directs allocation, reducing market rivalry.

Final answer: B