Which of the Following Statements Best Characterizes a Basic Difference

question 29

Multiple Choice

Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?

• A)Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.
• B)The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.
• C)Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally planned economy.
• D)None of the above are correct.

---

Definitions:

Introverts

Individuals who prefer solitary activities and get drained by social engagement, contrast to extraverts.

Subjective Well-Being

An individual's self-assessment of their emotions and satisfaction with life, encompassing both emotional reactions and cognitive judgments.

Inequality

The state of not being equal, especially in status, rights, and opportunities.

Culture

The sum of social behaviors, beliefs, practices, and material traits of a social group or society, often passed down from generation to generation.