Which of the Following Statements Is True

question 199

Multiple Choice

Which of the following statements is true?

• A) Planned economies have fared very well in recent years, with many of these economies thriving.
• B) Command economies operate the most efficiently because the government makes all the production decisions.
• C) In command economies consumers still exercise choice.
• D) In a command economy, consumers answer the questions of what to produce, how to produce it, and how to distribute it.

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Definitions:

Government Backing

Support or endorsement from a government body, often through policies, subsidies, or direct financial aid.

Gold Standard

A currency where the value is determined by the ability to trade it for a specified amount of gold (i.e., $1 for 1/35 of an ounce) at a government-approved bank.

Currency Value

The worth of a currency in terms of the amount of goods or services that one unit of the currency can purchase.

Government-Approved Bank

A financial institution that has received official authorization from the government to operate within certain regulatory standards.