Which Is NOT a Characteristic of a Centrally Planned Economy

question 15

Multiple Choice

Which is NOT a characteristic of a centrally planned economy?

• A) Planners set prices for goods produced in the economy.
• B) The right amounts of goods are usually available at the right time.
• C) Production levels for goods are determined by planners.
• D) Excess demand for some goods and excess supply for other goods is a common occurrence.

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Definitions:

Amount of Profit

The financial gain made in a transaction or operation, calculated as total revenues minus total costs.

Vertical Axis

The y-axis in a graph or chart, which typically represents the dependent variable in a data set.

Total Cost Curve

A graph that depicts how the total costs of production vary with the level of output.

Economic Profit

A measure of performance that captures the surplus generated from business activities after accounting for both explicit and implicit costs.