Which of the Following Is a Problem Inherent in Centrally

question 88

Multiple Choice

Which of the following is a problem inherent in centrally planned economies?

• A)Households and firms make poor decisions in choosing how resources are allocated.
• B)There is too little production of low-cost, high-quality goods and services.
• C)Production managers are more concerned with satisfying consumer wants than with satisfying government's orders.
• D)Exports tend to exceed imports.

---

Definitions:

Nonmonetary Attractiveness

The appeal of something based on non-financial factors, such as location, reputation, or quality of life.

Supply of Low-skill Workers

The availability of workers without specialized training or high qualifications in the labor market.

Corrected Earnings

Earnings that have been adjusted for factors such as inflation, accounting changes, or tax laws to provide a more accurate measure of real profitability.

Earnings Differential

The difference in wages or salaries stemming from differences in job difficulty, location, skills required, or other factors.