Which of the Following Statements About Economic Decision Making Is

question 187

Multiple Choice

Which of the following statements about economic decision making is TRUE?

• A) In a market-directed economy, the micro-level decisions of individual producers and consumers determine the macro-level decisions.
• B) Government planning usually works best when economies become more complex and the variety of goods and services produced is fairly large.
• C) The United States may be considered a pure market-directed economy.
• D) Command economies usually rely on market forces to determine prices.
• E) All of the above are true statements.

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Definitions:

Line Graph

A graphical representation of data where individual data points are connected by straight lines to show trends over time or categories.

Variable

An element, feature, or factor that is liable to vary or change; essential for research to assess its effects in an experiment.

Interval Scale

A type of measurement scale that allows for the quantification and comparison of the magnitude of differences between items, but does not have a true zero point.

Five-Point Scale

A measurement tool or survey response option scale that utilizes five discrete points, often used for evaluating attitudes, opinions, or behaviors.