Which of the Following Best Distinguishes a "Command Economy" from a "Market

question 28

Multiple Choice

Which of the following best distinguishes a "command economy" from a "market economy?"

• A)​A command economy is more efficient than a market economy because decision making is centralized.
• B)​There is scarcity in command economies, but not in market economies.
• C)​Command economies are less prone to inflation than are market economies.
• D)​Production and distribution decisions are made by central planners in a command economy, but not in a market economy.

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Definitions:

Competence

The quality or state of having sufficient knowledge, judgment, skill, or strength for a particular task.

Identity

The fact of being who or what a person or thing is; a distinct personality of an individual regarded as a persisting entity.

Role Confusion

Occurs when individuals are unsure about their place or role in society, often experienced during adolescence as part of identity development.

Basic Trust

A sense of trust and security fundamentally formed during infancy, as outlined in Erik Erikson's stages of psychosocial development.