Since It Is a Centrally Planned Economy, China Does Not

question 272

True/False

Since it is a centrally planned economy, China does not face opportunity costs when economic decisions are made.

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Definitions:

Double Its Inputs

The act of a firm increasing the amount of inputs used in production, such as labor and capital, by two times.

Level of Output

The quantity of goods or services produced by a firm or economy during a specific time period.

Cobb-Douglas

A mathematical function used in economic models to represent the relationship between two or more inputs and the resulting level of output.

Production Function

A mathematical representation of the relationship between inputs used in production and the output generated from those inputs.