Which of the Following Statements Does NOT Describe a Command

question 263

Multiple Choice

Which of the following statements does NOT describe a command economy?

• A) Government bureaucrats decide what and how much is to be produced.
• B) A command economy is sometimes called a "planned economy."
• C) Prices are set by the law of supply and demand.
• D) Producers offer a highly limited assortment of goods and services.
• E) The economy is found in countries like Iran and North Korea.

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Definitions:

T-Accounts

A visual representation used in bookkeeping to depict the debit and credit sides of an account, helping in the understanding and organization of financial transactions.

Transactions

Business activities that involve the exchange of goods, services, or funds between two or more parties.

Overapplied Overhead

The condition where the amount of manufacturing overhead allocated to products exceeds the actual overhead costs incurred.

Cost of Goods

The total expense incurred in acquiring or manufacturing the products sold by a business, typically including raw materials and labor costs.