In a Command Economy, the Three Economic Questions Are Answered

question 68

Multiple Choice

In a command economy, the three economic questions are answered by which of the following? ​

• A) ​The production and consumption choices made by sellers and buyers in decentralized markets.
• B) ​A cartel of major transnational corporations, government agencies, and consumer advocates.
• C) ​A trilateral commission of major corporations, elected officials, and economists.
• D) ​A central authority such as a peoples' committee or a dictator.

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Definitions:

Maximum Weekly Output

The highest quantity of goods or services that can be produced or delivered by a company or facility in a week, given resource and operational constraints.

Managerial Accounting

An accounting practice focused on providing financial information to managers for decision-making, planning, and controlling business operations.

Historical Perspective

A viewpoint that involves looking at current events or situations in the context of historical developments.

Non-Value-Added Activities

Activities that consume resources but do not add value for which customers are willing to pay.