Which of the Following Is Not One of the Three

question 62

Multiple Choice

Which of the following is not one of the three principal components of a socialist economy?

• A) Government ownership of the means of production
• B) Workers directed by a government planning board as to where they will work and how much they will be paid
• C) Entrepreneurs are encouraged by the profit motive, rather than government directive, to satisfy consumer wants in the most efficient manner possible
• D) Distribution is according to need

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Definitions:

Budget Constraint

The limitation on the consumption choices of an individual or family based on their income and the prices of goods and services.

Indifference Curve

A graph representing combinations of goods or services among which an individual is equally satisfied.

Equally Affordable

A condition where different goods or services have the same cost in terms of their value to a consumer, making them equally desirable.

Indifference Curves

Graphical representations in economics showing different combinations of two goods among which a consumer is indifferent in terms of utility or satisfaction.