Which of the Following Is True About the Three Broad

question 115

Multiple Choice

Which of the following is true about the three broad types of economic systems?

• A)For a pure market economy to function efficiently product supply must be restricted.
• B)In a command economy,state-owned enterprises have little incentive to control costs and be efficient.
• C)The sole role of government in a command economy is to encourage vigorous free and fair competition between private producers.
• D)Mixed economies were once uncommon throughout much of the world,although they are becoming more popular now.
• E)Production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.