Which of the following statements is false?
A) In a centrally planned economy, decisions concerning the three essential questions are made by those who control the government.
B) In a market economy, firms do not interact with consumers.
C) The two alternative approaches to the three essential questions are market economies and command economies.
D) In a market economy, decisions concerning the three essential questions result from interactions taking place in markets.
E) In both centrally planned and market economies, the three essential economic questions are what, how, and for whom.
Correct Answer:
Verified
Q130: The key elements of a market economy
Q131: Without property rights,
A)people would have more of
Q132: Establishing property rights
A)is a characteristic of most
Q133: Property rights are not necessary for a
Q134: A centrally planned economy is also called
Q136: Property rights to inventions discourage people and
Q137: Economic interaction occurs in firms as opposed
Q138: The role of government in a market
Q139: Transaction costs are the costs of
A)bribing government
Q140: The government can improve market conditions in
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