Which of the Following Statements Best Characterizes a Basic Difference

question 29

Multiple Choice

Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?

• A)Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.
• B)The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.
• C)Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally planned economy.
• D)None of the above are correct.

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Definitions:

PO

An abbreviation for "per os," the Latin term for "by mouth," indicating oral administration of medication.

Daily

Occurring, done, or used every day; daily activities are part of the day-to-day routine.

Inflammatory Condition

A medical state characterized by inflammation, which is the body's response to injury, infection, or irritation.