Which of the Following Statements Best Characterizes a Basic Difference

question 29

Multiple Choice

Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?

• A)Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.
• B)The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.
• C)Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally planned economy.
• D)None of the above are correct.

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Definitions:

Interdisciplinary Subspecialty

A field that combines aspects from multiple disciplines to approach a particular issue or topic from various perspectives.

Health Psychology

A branch of psychology focused on how biological, psychological, and social factors affect health and illness.

Sympathetic Nervous System

Part of the autonomic nervous system that activates the body's fight-or-flight response during stressful situations.

Peripheral Nervous System

Part of the nervous system outside the brain and spinal cord, responsible for connecting the CNS to limbs and organs.