Which of the Following Is Characteristic of a Command Allocation

question 47

Multiple Choice

Which of the following is characteristic of a command allocation system?

• A) The government's role is to ensure the protection of consumer rights.
• B) Product distribution is handled by a large number of intermediaries.
• C) The state makes decisions on what consumers should purchase.
• D) Consumers allocate resources to the system.

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Definitions:

Price Index

A statistical measure that examines the weighted average of prices of a basket of consumer goods and services, showing trends over time.

Base Year

A specific year against which economic, financial, or statistical data is standardized or indexed, allowing for comparison over time.

Consumer Price Index

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.

Inflation Rate

The pace at which the overall price level for goods and services increases, diminishing the buying power.