In a Command Economy, ________

question 81

Multiple Choice

In a command economy, ________.

• A)businesses and consumers are assumed to be the best judges of how resources should be allocated
• B)the government sets goals and determines the price and quantity of what is produced
• C)different economic sectors coordinate the activities of the federal government
• D)each enterprise sets its goals before making reports to the central government

---

Definitions:

Estimated Useful Life

The expected time period during which an asset is likely to be functional and economically useful.

Internal Rate of Return

A financial metric used to evaluate the profitability of an investment, representing the discount rate that makes the net present value of all cash flows equal to zero.

Net Present Value

The variance between the current value of cash coming in and the current value of cash going out over a time span.

Discount Rate

The interest rate used in determining the present value of future cash flows or in evaluating the attractiveness of an investment.