A Principal Feature of a Command Economy Is That ____________

question 84

Multiple Choice

A principal feature of a command economy is that ____________.

• A) production decisions are made by profit-maximizing firms.
• B) there is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.
• C) consumers are allowed to determine that is produced based on their demand for goods and services.
• D) regulatory agencies constrain the most egregious forms of market power in a market system of allocation.

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Definitions:

Outstanding Checks

Checks that have been written and recorded in the check register but have not yet been cashed or cleared by the bank.

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes to the seller under the terms of an earlier invoice.

NSF Checks

Checks that are not honored by the bank due to insufficient funds in the account of the drawer.

Bank Service Charges

Fees charged by banks for account maintenance, transactions, and other financial services.