As Opposed to the Market System, in Command Economies

question 30

Multiple Choice

As opposed to the market system, in command economies:

• A)the reward for innovation is extensive.
• B)the reward for innovation does not exist.
• C)meeting the production targets are extremely important.
• D)the profit motives are extremely high.

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Definitions:

Compounded Semi-annually

Interest computation technique where the sum earns interest twice annually, compounding the overall growth over time.

Monthly Payment

A fixed payment amount made by a borrower to a lender at agreed upon intervals, commonly used in loan agreements.

Interest

The cost of borrowing money or the income received from lending money, usually expressed as a percentage of the principal.

Compounded Monthly

The process where interest is calculated and added to the principal sum on a monthly basis.