Which of the Following Statements Is NOT True for a Command

question 70

Multiple Choice

Which of the following statements is NOT true for a command economy?

• A) Consumers have some choices concerning what they buy.
• B) The government decides what is produced.
• C) The amount of a good supplied always equals the amount of the good demanded.
• D) The state decides how to distribute what is produced.

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Definitions:

Third-Degree Price Discrimination

A pricing strategy where different prices are charged to different groups of consumers for the same product or service, based on varying demand elasticities.

Demand Function

A mathematical formula that describes the relationship between the quantity demanded of a good and its price, holding other factors constant.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider to different groups of consumers.

Monopolist

An economic agent (individual or company) that is the sole supplier of a particular commodity or service, controlling the market.