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:

Harold Innis

A Canadian professor and scholar known for his contributions to the field of economics and his theories on the societal impacts of communication media.

Canadian Society

Refers to the social structure, cultural norms, and collective identity that characterize Canada and its inhabitants.

Sophists

Ancient Greek teachers and philosophers known for their skill in argumentation and for their role in teaching rhetoric, politics, and ethics.

Sociological Perspective

An approach to understanding human behavior by placing it within its broader social context, considering how societies influence people and vice versa.