When Central Planners in a Command Economy End Up Having

question 68

Multiple Choice

When central planners in a command economy end up having a huge surplus of shoes and widespread shortages of bread in their economy, they have failed to attain

• A) productive efficiency.
• B) allocative efficiency.
• C) minimum opportunity costs.
• D) maximum process and revenues.

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Definitions:

Individual Rights

The liberties and entitlements that individuals are guaranteed under the law, including rights to free speech, privacy, and fair trial.

John Locke

A 17th-century English philosopher and political theorist, known as the "Father of Liberalism", whose ideas on individual rights and government by consent significantly influenced the development of political philosophy and democracy.

Governments

Systems or groups of people governing an organized community, often a state.

Grenville's Legislation

A series of acts passed by British Parliament in the mid-18th century, named after George Grenville, aiming to impose taxes and assert tighter control over the American colonies.