Pure Capitalism and a Pure Command System Represent

question 156

Multiple Choice

Pure capitalism and a pure command system represent:

• A)two different ways of answering the basic economic questions.
• B)two names describing the same method of answering the basic economic questions.
• C)the only two ways of answering the basic economic questions.
• D)the most efficient ways to answer the basic economic questions.
• E)two market systems of resource distribution.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved or is unattainable.

Units Bought

Refers to the quantity of a particular good or service purchased by consumers or businesses.

Tax Imposed

A financial charge or other levy placed upon an individual or a legal entity by a state or a functional equivalent of a state.

Consumer Surplus

The difference between the amount consumers are willing to pay for a good or service versus what they actually pay.