Which of the Following Is True of an Economy That

question 126

Multiple Choice

Which of the following is true of an economy that operates entirely through central planning?

• A)An individual's success in business is based on political savvy rather than economic profitability.
• B)There is relative ease in matching resource allocation to consumer demand by the central planners.
• C)Central planners receive market information and coordinate economic activity through the price mechanism.
• D)The system adapts easily to technological change, because there is a healthy entrepreneurial spirit.

Understand the basic principles of monetarism and its approach to managing the economy.

Analyze the concept of rational expectations and its implications for economic policy.

Evaluate the effectiveness of monetary and fiscal policies in influencing economic outcomes.

Comprehend the differences between Keynesian and monetarist views on economic stability and policy interventions.