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.

Understand different economic systems (capitalism, socialism, communism, mixed economy) and their characteristics.

Comprehend the concept of market structures and their types (pure competition, monopolistic competition, oligopoly, monopoly).

Recognize the role and effects of government policies on economic activities (fiscal policies, monetary policies, unemployment, and inflation).

Identify the causes and types of unemployment and their impacts on the economy.

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Definitions:

Profitability

The degree to which a company or economic activity yields profit or financial gain, often measured as a ratio or percentage of revenue.

Complement

A good or service that is used together with another good or service, increasing demand for both.

Substitute

A good or service that can be used in place of another good or service, typically because it serves a similar function or satisfies the same needs.

Demand Equation

A mathematical representation of the demand curve, expressing the relationship between the quantity demanded and various factors that influence it, such as price.