Which of the Following Is NOT a Characteristic of a Centrally

question 89

Multiple Choice

Which of the following is NOT a characteristic of a centrally planned economy?

• A)Consumers vote with their dollars thus guiding resources to produce what the society wants.
• B)Government sets the prices.
• C)The government decides how much of each good should be produced.
• D)All of these statements are characteristics of centrally planned economy.

---

Definitions:

Kenneth Arrow

An influential economist known for his groundbreaking theories in risk, welfare economics, and his contribution to the general equilibrium theory.

Condorcet Paradox

The Condorcet Paradox describes a situation in voting theory where collective preferences can be cyclical, even if individual preferences are not, leading to a lack of clear majority preference.

Pairwise Vote

A voting system where candidates are compared and voted on in pairs, with the winner being the one who wins the most direct comparisons.

Unanimity

A condition in decision-making where all members of a group fully agree on a specific decision or outcome.