Which of the Following Statements About Economic Decision Making Is

question 97

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.

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Definitions:

Debt Financing

A method of raising capital through the borrowing of money, which needs to be repaid at a later date, often with interest.

Lessee

An individual or entity that leases or rents property from a lessor.

Leasing Cash Flows

The cash inflows and outflows associated with leasing operations, including initial receipts, ongoing lease payments, and final residuals.