Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A)In a centrally planned economy, decisions concerning the three essential questions are made by those who control the government.
• B)In a market economy, firms do not interact with consumers.
• C)The two alternative approaches to the three essential questions are market economies and command economies.
• D)In a market economy, decisions concerning the three essential questions result from interactions taking place in markets.
• E)In both centrally planned and market economies, the three essential economic questions are what, how, and for whom.

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Definitions:

1950

A historical year during the mid-20th century characterized by post-World War II recovery, the beginning of the Cold War, and significant cultural and technological changes.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, usually measured on a yearly basis.

Eisenhower Administration

The presidency of Dwight D. Eisenhower, the 34th president of the United States, from 1953 to 1961, known for its moderate political stance during the Cold War era.

Federal Government

The national government of a federation, which has specific powers accorded to it by a constitution, distinct from regional governments.