Which of the Following Is a Correct Characterization of Socialism

question 38

Multiple Choice

Which of the following is a correct characterization of socialism?

• A) Tradition answers the basic economic questions.
• B) Markets are used exclusively to answer the basic economic questions.
• C) Central planning is seldom used to answer the basic economic questions.
• D) Government ownership of many resources and centralized decision-making answers the basic economic questions.

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Definitions:

Market Equilibrium

A situation in a market when quantity supplied equals quantity demanded at a certain price level.

Fixed Exchange Rate

A system where the value of a currency is set to a specific rate against another currency or basket of currencies.

Currency Market Intervention

Involves central banks or other monetary authorities buying or selling currencies to influence exchange rates.

Foreign Exchange

Foreign Exchange involves the trading of currencies against one another, facilitating international trade and investment.