Distinguish between a command-and-control economic system and a price system
What will be an ideal response?
In a command-and-control economic system, economic decisions about resource allocation are made by a central authority, such as a central government or a king or queen. Under command and control, this central authority decides what items will be produced, how will the items be produced, and who will obtain those items. In a price or market system, the what, how and for whom issues are determined via decentralized decision making among buyers and sellers in the market.
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Suppose a consumer has the following rule of thumb: Regardless of how gasoline prices fluctuate, she will always buy $20 of gasoline per week and then adjust her driving patterns accordingly. We can then conclude the following:
A. Her own-price elasticity of demand is equal to -1. B. Her income-elasticity of demand is 0. C. Her own-price elasticity is 0. D. Her income elasticity of demand is -1. E. Both (a) and (b). F. Both (a) and (d). G. Both (c) and (d) H. None of the above.
Technological advances lead to ________
A) a shift of the short run AS curve up B) a shift of the long run AS curve to the left C) an upward movement along the long run AS curve D) all of the above E) none of the above
Whites feel as strongly as blacks that discrimination persists
Indicate whether the statement is true or false
Which of the following typically purchases the most goods and services in the U.S. economy?
A. Businesses. B. Foreigners. C. Federal, state and local governments combined. D. Households.