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In a Command Economy, the Central Government

Question 11

Multiple Choice

In a command economy, the central government


A) supports free enterprise in every way possible.
B) decides on the allocation of all or most factors of production.
C) encourages citizens to buy shares of stock in small companies rather than large ones.
D) keeps its control activities to a minimum so it doesn't interfere with business efficiency.
E) creates shortages on purpose in order to motivate businesses to be more efficient.

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