A Major Distinguishing Feature Between Capitalist and Socialist (Or Command)economies

question 4

Multiple Choice

A major distinguishing feature between capitalist and socialist (or command) economies is that:

• A)the average citizen is always wealthier in capitalist economies than in socialist economies.
• B)decision making is typically decentralized in socialist economies and is centralized in capitalist economies.
• C)resources are privately owned in capitalist economies and private property rights are enforced by a dictator in command economies.
• D)resources are publicly owned in capitalist economies.
• E)decision making is typically decentralized under capitalism,while it is centralized in command economies.

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Definitions:

Real GDP

The value of all finished goods and services produced within a country's borders in a specific time period, adjusted for inflation.

GDP

Gross Domestic Product, the total monetary value of all goods and services produced within a country's borders in a specific time period.

Net Domestic Product

The total value of all goods and services produced within a country in a year, after accounting for depreciation.

Gross National Product

The total value of goods produced and services provided by a country during one year, including the net income from foreign investments.