Which of the Following Is a Major Distinguishing Feature Between

question 31

Multiple Choice

Which of the following is a major distinguishing feature between capitalist and socialist (or command) economies?  

• A) Under capitalism the average citizen is always wealthier than in socialist economies. 
• B) Decision making is typically decentralized in socialist economies and is centralized in capitalist economies. 
• C) Resources are publicly owned in capitalist economies. 
• D) Decision making is typically decentralized under capitalism while it is centralized in command economies.

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Definitions:

Mixed Costs

Expenses that have both fixed and variable components, changing with the level of activity but having a base cost.

Statistical Analysis

The process of collecting, examining, interpreting, and presenting data to discover underlying patterns and trends.

Variable Cost

Costs that vary directly with the level of production or service activity, such as raw materials and direct labor.

Machine-hour

A unit of measure representing the operation of a machine for one hour, often used in cost accounting to allocate expenses.