Which of the Following Is Correct in Describing the Communist

question 143

Multiple Choice

Which of the following is correct in describing the communist economic system?

• A)The centralized planning emphasis on capital equipment and military hardware has caused declines in the prices of consumer goods.
• B)Government ownership of the means of production is only temporary.
• C)Most government-operated enterprises are very efficient because of central planning.
• D)Overall production expands rapidly because of central planning.
• E)The government owns and operates all sources of production.

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Definitions:

Fixed Asset Turnover Ratio

A financial metric that measures a company's efficiency in using its fixed assets to generate sales, calculated by dividing sales by the book value of fixed assets.

Net Fixed Assets

The value of a company's property, plant, and equipment minus any accumulated depreciation, representing long-term investments in the business.

Sales

The exchange of goods or services for money; also refers to the function or department within a business that handles this activity.

Times Interest Earned Ratio

A financial metric that measures a company's ability to meet its debt obligations based on its current income.