Which Statement Is True

question 94

Multiple Choice

Which statement is true?

• A)Private business firms are illegal in China.
• B)In China today, there is strict adherence to the communist credo, "From each according to his ability, to each according to his needs."
• C)Major economic reforms in China in the late 1970s and early 1980s created a much more market oriented economy than a centrally planned one.
• D)None of the statements are true.

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Definitions:

Diminishing Returns

A principle stating that if one factor of production is increased while others are held constant, the incremental output will eventually decrease.

Scale

The size or level of something, often used to describe the scope of a business operation or production.

Increasing Returns

A situation in production where the output increases by a proportion greater than the increase in inputs, often leading to economies of scale.

Input Prices

The prices of the raw materials, components, or services that are used to produce a final product or service.