Which of the Following Statements About Central Planning Is Accurate

question 28

Multiple Choice

Which of the following statements about central planning is accurate?

• A)It emphasized production of consumer goods over infrastructure.
• B)It proved unable to create strong worker incentives.
• C)It relied too heavily on market forces to determine supply and demand.
• D)It emphasized agricultural production at the expense of the industrial sector.
• E)It encouraged too much interdependence among domestic economic entities.

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Definitions:

Risk Aversion

The tendency to prefer certainty over uncertainty, typically by choosing safer or guaranteed outcomes over riskier ones in decision-making.

Small Business

Any independently owned and operated business that is not dominant in its competitive area and does not employ more than 500 people.

Competitive Area

The space or domain in which businesses compete against each other for market share.