What Is the Term for a System of Economic Organization

question 124

Multiple Choice

What is the term for a system of economic organization in which the ownership and control of productive capital assets rests with the state, and resources are allocated through central planning and political decision making?

• A) a command economy
• B) a market economy
• C) a corporate economy
• D) a capitalist economy

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Definitions:

Depreciation Expense

The charge to expense a portion of the cost of a fixed asset over its useful life, representing wear and tear, obsolescence, or decline in value.

Constant Rate

A uniform pace or level that does not change over a given time period.

Double-Declining-Balance

The Double-Declining-Balance method is an accelerated depreciation technique which doubles the rate of straight-line depreciation, emphasizing higher depreciation costs in the early years of an asset's life.

Residual Value

The projected sale price of an asset at the termination of its operational life.