Which one of the following central features is <strong>not</strong> associated with Capitalist Economy ?
- A. There is generalised commodity production - it has market value.
- B. Productive wealth is held predominantly in private hands.
- C. Economic life is organised according to market principles.
- 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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