Which of the Following Is a Characteristic of a Pure

question 148

Multiple Choice

Which of the following is a characteristic of a pure command economy?

• A)All resources are privately owned.
• B)Economic activity is coordinated by the price system.
• C)Competitive markets guide resources to their highest-valued uses.
• D)Centralized economic planning is used to answer the basic economic questions.
• E)Economic choices are voluntary and are based on rational self-interest.

---

Definitions:

Cognitive Inertia

The tendency of human minds to stick to existing thought patterns or beliefs, resisting changes even in the face of new information.

Significant Result

In statistical analysis, a result that is unlikely to have occurred by chance alone, according to a predefined threshold of probability, indicating a meaningful difference or relationship.

Repetitions

The act or process of doing or saying something again, often to learn or reinforce.

Chance

A concept referring to the occurrence of events in the absence of any obvious intention or cause.