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Questions and Answers
In a planned (command) economic system, who makes all decisions about resource allocation?
In a planned (command) economic system, who makes all decisions about resource allocation?
- Government (correct)
- Producers
- Market forces
- Consumers
What is the main principle underlying a planned (command) economic system?
What is the main principle underlying a planned (command) economic system?
- Market competition
- Profit maximization
- Equity (correct)
- Efficiency
- Consumer sovereignty
What led to shortages of some products and surpluses of others in a pure command economy?
What led to shortages of some products and surpluses of others in a pure command economy?
- Market demand
- Government intervention
- Price mechanism (correct)
- Consumer preferences
What is one of the fundamental failings of a pure command economy related to worker productivity?
What is one of the fundamental failings of a pure command economy related to worker productivity?
How are decisions made in a planned (command) economic system?
How are decisions made in a planned (command) economic system?
What is the characteristic of resource allocation in a planned (command) economic system?
What is the characteristic of resource allocation in a planned (command) economic system?
Which economic system allows producers the most freedom to decide what to produce?
Which economic system allows producers the most freedom to decide what to produce?
What is the primary motivation for producers in a free market economic system?
What is the primary motivation for producers in a free market economic system?
In a free market economic system, how are resources allocated?
In a free market economic system, how are resources allocated?
Which mechanism guides resource allocation in a free market economic system?
Which mechanism guides resource allocation in a free market economic system?
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