In a Pure Command Economy

question 16

Multiple Choice

In a pure command economy:

• A)all productive activities are owned by the state.
• B)all productive activities are privately owned.
• C)the goods and services that a country produces are not planned by anyone.
• D)production is determined by the interaction of supply and demand.

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Definitions:

Assets

Resources owned by a business or individual deemed to have economic value and expected to provide future benefits.

Liabilities

Financial obligations or debts a company owes to others, due to be paid in the future.

Accounts Payable

describes the short-term liabilities a company owes to its suppliers or creditors for goods or services received but not yet paid for.

Accounts Receivable

The amount of money owed to a business by its customers for products or services that have been delivered but not yet paid for.