Which of the Following Is a Problem Inherent in Centrally

question 88

Multiple Choice

Which of the following is a problem inherent in centrally planned economies?

• A)Households and firms make poor decisions in choosing how resources are allocated.
• B)There is too little production of low-cost, high-quality goods and services.
• C)Production managers are more concerned with satisfying consumer wants than with satisfying government's orders.
• D)Exports tend to exceed imports.

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Definitions:

Dividend Per Share

The amount of dividend a company pays out to each shareholder for each share they own.

Retained Earnings

The portion of a company's profit that is held back and not paid out as dividends, used for reinvestment in the business or debt repayment.

Stock Split

A corporate action that increases the number of shares in a company by issuing more shares to current shareholders proportional to their ownership.

Market Value

The current value of an asset or company based on the price that it can be sold in the open market.