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The Difference Between a Centralized Economy and a Market Economy

Question 5

Multiple Choice

The difference between a centralized economy and a market economy is that


A) the centralized economy does not have any markets for goods and services, whereas a market economy has fully functioning markets.
B) governments make production decisions in a centralized economy, and individuals make production decisions in a market economy.
C) governments have maximum decision-making power in a centralized economy but have zero decision-making power in a market economy.
D) individuals make production decisions in a centralized economy, and the government makes production decisions in a market economy.

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