Which of the Following Is True of a Command Economy

question 59

Multiple Choice

Which of the following is true of a command economy? 

• A) All factors of production are privately owned. 
• B) The government only performs those functions that the private sector cannot perform. 
• C) It does not allow private entrepreneurship. 
• D) It strictly follows the doctrine of laissez faire.

---

Definitions:

Net Profit Margin Ratio

A financial performance metric that calculates the percentage of net income to revenue, indicating how much profit a company generates from its revenues.

Accruing Interest

The process of recognizing interest expense or income that has been incurred but not yet paid or received, over a period of time.

Depreciation Expense

An accounting method that allocates the cost of tangible assets over their useful lives, reflecting the reduction of value over time.

Previously Accrued Wages

These are wages that have been earned by employees but have not yet been paid out by the company.