In a command economy

a. a dictator makes every economic decision
b. owners can sell their resources to the highest bidder
c. no individual or group coordinates the economy
d. in theory, individual choices are reflected in collective decisions, and decisions are made by central planners
e. public ownership of resources is combined with free markets to direct economic activity

D

Economics

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You have just read that the Federal Reserve has increased the money supply to avoid a recession. For a given price level, you would expect the LM curve to

A) shift up and to the left as the real money supply falls. B) shift up and to the left as the real money supply rises. C) shift down and to the right as the real money supply falls. D) shift down and to the right as the real money supply rises.

Economics

If the external costs of production are not taken into account, then production will

A) be less than socially desirable. B) be more than socially desirable. C) be the same since only prices are affected by externalities. D) cease.

Economics