Which of the Following Is Characteristic of Planned Economic Systems

question 37

Multiple Choice

Which of the following is characteristic of planned economic systems?

• A) There is a deep suspicion of the exploitation that can occur when individuals pursue their own self-interests.
• B) Innovative entrepreneurs are rewarded for taking risks and solving problems in new ways.
• C) There is an assumption that the laws of supply and demand will allow some to profit and some to fail.
• D) There is a complete elimination of private property.

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Definitions:

ASPE

Accounting Standards for Private Enterprises; a set of accounting practices and standards for private companies in Canada.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for preparing financial statements.

Comparability

An accounting principle that ensures financial statements can be consistently compared across different periods and entities.

Differential Reporting

A principle allowing entities not to adhere strictly to some accounting standards if their specific size or nature makes such standards not relevant.