A Major Distinguishing Feature Between Capitalist and Socialist (Or Command)economies

question 173

Multiple Choice

A major distinguishing feature between capitalist and socialist (or command) economies is that

• 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)socialist countries all have red flags and capitalistic economies do not
• D)resources are publicly owned in capitalist economies
• E)decision making is typically decentralized under capitalism while it is centralized in command economies

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Definitions:

Consumer Surplus

The contrast in the total money consumers are willing to shell out for a good or service versus what they truly pay.

Speculative Demand

Demand driven not by the direct benefits one obtains from owning or consuming a good but instead by an expectation that the price of the good will increase.

Arc Price Elasticity

A measure of the responsiveness of the quantity demanded or supplied of a good to a change in its price, over a specific price range.

Barbecue Plates

A traditional serving of various barbecued meats and accompanying side dishes, often enjoyed at social gatherings or restaurants specializing in barbecued cuisine.