Central Planning of Resource Allocation

question 66

Multiple Choice

Central planning of resource allocation:

• A) was attempted by the United States during the 1973-1974 oil crisis.
• B) can only succeed if the central planners have perfect information on the best uses of resources.
• C) was the dominant economic planning method in both the former Soviet Union and China.
• D) All of the answers are correct.

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Definitions:

Vertical Mergers

A type of merger between companies that operate at different stages of the production process for a specific finished product, enhancing efficiency or reducing costs.

Conglomerate Mergers

A type of merger where two or more companies in unrelated industries combine business operations to reduce risk and diversify their business interests.

Concentrated Industries

Industries in which a small number of companies hold a large market share, resulting in reduced competition.

R&D

Research and Development: Activities in connection with corporate or governmental innovation.