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.

---

Definitions:

Callable Bond

A type of bond that can be repaid by the issuer before its maturity date, typically at a premium to the face value.

Puttable Bond

Puttable Bond is a type of bond that gives the holder the right to force the issuer to buy back the bond at a specified price before maturity.

Bondholder

A bondholder is an investor or entity that owns a bond issued by a borrower, entitling them to receive the bond's face value at maturity, along with periodic interest payments.

TIPS

Treasury Inflation-Protected Securities, which are U.S. government bonds that are indexed to inflation to protect investors from the negative effects of rising prices.