Which of the Following Statements Best Characterizes a Basic Difference

question 29

Multiple Choice

Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?

• A)Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.
• B)The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.
• C)Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally planned economy.
• D)None of the above are correct.

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Definitions:

The Art of War

An ancient Chinese military treatise attributed to Sun Tzu, focused on strategy, tactics, and foresight in military operations and warfare.

Economic Decline

A period characterized by a decrease in the economic performance of a country or region, often marked by a fall in GDP, employment, and investment.

New World

A term historically used to refer to the Americas, indicating their discovery by European explorers during the Age of Exploration.

Disease

A disorder of structure or function in a human, animal, or plant, especially one that produces specific symptoms or that affects a specific location and is not simply a direct result of physical injury.