Which of the Following Statements Is True for a Command

question 49

Multiple Choice

Which of the following statements is true for a command economy?

• A) Consumers have no choice concerning what they buy.
• B) Manufacturers decide what is produced.
• C) The amount of a good supplied always equals the amount of the good demanded.
• D) The state decides how to distribute what is produced.

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Definitions:

Accounting Profits

The difference between a company's total revenue and its total expenses, excluding taxes and costs not directly related to its core business operations.

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs, measuring the performance of a firm beyond its opportunity costs.

Economic Profit

Economic profit is the difference between a firm's total revenue and its total costs, including both explicit and implicit costs, representing the excess over the firm's opportunity costs.

Implicit Costs

The firm’s opportunity costs of using resources owned or provided by the owner.