Asked by
Saurabh Singh
on Nov 25, 2024
Verified
Which of the following is true of an economy that operates entirely through central planning?
A) An individual's success in business is based on political savvy rather than economic profitability.
B) There is relative ease in matching resource allocation to consumer demand by the central planners.
C) Central planners receive market information and coordinate economic activity through the price mechanism.
D) The system adapts easily to technological change, because there is a healthy entrepreneurial spirit.
Central Planning
An economic system where the government makes all decisions on the production and allocation of goods and services.
Economic Profitability
The difference between total revenue and total costs, including both explicit and implicit costs, indicating the financial success and viability of a venture.
Resource Allocation
The process of assigning available resources in the most efficient way to meet the objectives of an organization or economy.
- Understand the unique features and effects on economic results of market versus command economies.
- Examine the impact of governmental and political structures on various economic models.
Verified Answer
DP
Learning Objectives
- Understand the unique features and effects on economic results of market versus command economies.
- Examine the impact of governmental and political structures on various economic models.