Which of the Following Is True of an Economy That

question 126

Multiple Choice

Which of the following is true of an economy that operates entirely through central planning?

• A)An individual's success in business is based on political savvy rather than economic profitability.
• B)There is relative ease in matching resource allocation to consumer demand by the central planners.
• C)Central planners receive market information and coordinate economic activity through the price mechanism.
• D)The system adapts easily to technological change, because there is a healthy entrepreneurial spirit.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, representing the benefits you could have received by taking an alternative action.

Movieplex

A modern movie theater complex featuring multiple screens within a single venue, allowing for the screening of various films simultaneously.

Coupon

A voucher or code that entitles the holder to a discount off a particular product or service, or a certificate of interest payment on a bond.

Marginal Cost

The expense associated with manufacturing or providing an additional unit of an item or service.