In a Command Economy, How Are Decisions About How to Allocate

question 121

Multiple Choice

In a command economy, how are decisions about how to allocate resources made?

• A) by a lottery system
• B) by individuals and firms interacting in markets coordinated by a price system
• C) by the firms that have the most power in the market
• D) by a central planning board

---

Definitions:

Variable Rate Mortgage

A type of mortgage where the interest rate can change, based on an index or an agreement between the lender and borrower.

Mortgage Reform and Anti-Predatory Lending Act

A legislative act aimed at curbing predatory lending practices in the mortgage industry, ensuring fair and transparent loan terms for borrowers.

Truth-in-Lending Act

Legislation from the federal government in the United States intended to support the well-informed utilization of consumer credit by mandating the disclosure of its conditions and costs.

Restrictive Covenant

A clause in a contract that limits certain actions of the parties involved, often to protect business interests or preserve confidentiality.