The first one is correct. In a planned economy, also known as a command economy, the state determines prices and allocates resources.
Answer: B i hope this helps =D
There are more people who are governed than who does the government. Governing with people's liberties is what makes the country thrive along with its economy and the conditions of the civilians livelihood. Additionally, impeding upon your publics rights for the sake of securing a kind of tyrranical rule over people, will always result in an overthrowing by the public.
Excuse me, this does not look like a HISTORY question.