A Fundamental Difference Between the Command System and Laissez-Faire Capitalism

question 252

Multiple Choice

A fundamental difference between the command system and laissez-faire capitalism is that, in command systems,

• A) the division of output is decided by central planning rather than by individuals operating freely through markets.
• B) all economic decisions are made by the government, whereas there is no government in laissez-faire capitalism.
• C) scarcity does not exist, whereas it does in laissez-faire capitalism.
• D) money is not used, whereas it is in laissez-faire capitalism.

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Definitions:

Theory of Atoms

A scientific theory that matter is composed of discrete units called atoms, which are the basic building blocks of chemical substances.

Law of Definite Proportions

A chemical law stating that a compound always contains exactly the same proportion of elements by mass.

Dalton's Atomic Theory

A foundational concept in chemistry that asserts elements are composed of tiny, indivisible particles called atoms, and that chemical reactions involve the rearrangement of these atoms.

Rutherford

Refers to Ernest Rutherford, the scientist who proposed the model of the atom with a central nucleus surrounded by electrons.