Which one of the following central features is <strong>not</strong> associated with Capitalist Economy ?

  1. A. There is generalised commodity production - it has market value.
  2. B. Productive wealth is held predominantly in private hands.
  3. C. Economic life is organised according to market principles.
  4. D. Economic organisation is based on planning, a supposedly rational process of resource allocation.

Correct Answer: D. Economic organisation is based on planning, a supposedly rational process of resource allocation.

Explanation

Central economic planning and rational resource allocation by the state are core features of a socialist or command economy, not a capitalist economy, which relies on free market forces.

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