In a Command Economy

question 138

Multiple Choice

In a command economy

• A)a dictator makes every economic decision
• B)owners can sell their resources to the highest bidder
• C)no individual or group coordinates the economy
• D)in theory, individual choices are reflected in collective decisions, and decisions are made by central planners
• E)public ownership of resources is combined with free markets to direct economic activity

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Definitions:

Satisficing Decisions

Solutions that aim for acceptable results rather than for the best or optimal ones.

Tactical Decisions

Short-term choices made to achieve specific objectives that are part of a larger strategic plan.

Heuristics

Shortcuts or “rules of thumb” that allow us to make judgments and decisions quickly and efficiently.

Rules Of Thumb

Simple, practical guidelines or principles derived from experience and used to make decisions or solve problems quickly.