Which of the Following Is a Characteristic of a Pure

question 111

Multiple Choice

Which of the following is a characteristic of a pure command economy?

• A)all resources are privately owned
• B)economic activity is coordinated by the price system
• C)competitive markets guide resources to their highest-valued uses
• D)centralized economic planning is used to answer the basic economic questions
• E)economic choices are voluntary and are based on rational self-interest

---

Definitions:

Depreciation Expense

The organized spreading of a tangible asset's expense over the duration of its utility.

Useful Life

The estimated duration a fixed asset is expected to be economically usable, with normal repairs and maintenance.

Straight-Line Method

A depreciation technique that allocates an equal amount of depreciation to each year of the asset's useful life.

Salvage Value

The estimated resale value of an asset at the end of its useful life, used in calculating depreciation.