A Command System Is Characterized By

question 1

Multiple Choice

A command system is characterized by:

• A)reliance on the government to determine what is produced and who gets the output.
• B)freedom of choice and freedom of competition.
• C)reliance on the forces of supply and demand to determine what is produced.
• D)an extremely rapid rate of economic growth.

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Definitions:

Labor Supply Curve

Represents the relationship between the wage rate and the quantity of labor that workers are willing to supply, typically showing that higher wages attract a larger labor supply.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute away from more expensive items toward cheaper ones.

Higher Wage

An increased rate of pay provided to employees, typically as a result of increased skill, productivity, or market pressures.

Labor Supply Curve

A graphical representation of the relationship between the wages on the vertical axis and the amount of labor willing to work at that wage on the horizontal axis.