The Essential Difference Between a Command Economy and a Market

question 1

Multiple Choice

The essential difference between a command economy and a market economy lies in _____.

• A) consumption patterns
• B) resource ownership
• C) natural endowments
• D) demographic features

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Definitions:

Absolute Efficiency

A state where resources are allocated in the most effective way possible, achieving maximum output with given inputs.

Natural Endowment

Resources found in nature that have economic value or utility, such as minerals, forests, and water.

Merchandise Trade Deficit

A situation where a country's imports of goods exceed its exports of goods, leading to a negative balance of trade.

Record

A document or electronic file that systematically captures and preserves information or data for future reference or analysis.