When a Country Like North Korea Is Characterized as a Command

question 64

Multiple Choice

When a country like North Korea is characterized as a command economy, it's because most prices are

• A)determined in the market, and they usually lead to market failures.
• B)set by the government, which usually leads to inefficiencies.
• C)determined in the market, and they result in efficient outcomes.
• D)set by the government, and they result in efficient outcomes.
• E)determined in the market, and they usually lead to inefficiencies.

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Definitions:

Operational Excellence

The execution of the business strategy more consistently and reliably than the competition, involving continuous improvement in processes and achieving high customer satisfaction.

Competitive Advantage

An attribute or combination of attributes that allows an organization to outperform its competitors, including cost structure, product quality, brand, customer service, or technology.

Home-Based Businesses

Enterprises that are operated from the owner's home, often utilizing online and digital tools for operations and marketing.

Capital Base

The amount of capital invested in a business by its owners plus any retained earnings, serving as the financial foundation for growth and operations.