Which Statement Is the Most Accurate

question 181

Multiple Choice

Which statement is the most accurate?

• A)Ordering a pencil for work in a communist economy usually is less complicated than the same process in a capitalist economy.
• B)Rules and regulations bind Communist bureaucrats because there is no trust that a bureaucrat can make simple business decisions.
• C)Because of underlying trust,business flows smoothly in virtually all communist societies.
• D)Ordering a pencil for work is equally complicated in a capitalist and a communist business.

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Definitions:

Change in Demand

A shift in the demand curve, due either to changes in consumer preferences, income levels, prices of related goods, or other factors, affecting the quantity demanded at any given price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level, within a specific time frame.

Law of Supply

An economic principle stating that as the price of a good or service increases, the quantity supplied of that good or service also increases, and vice versa, all else being equal.

Law of Demand

A principle that describes the inverse relationship between the price of a good or service and the quantity demanded by consumers.