Which of the following statements is FALSE?
A)Many planned economies have not fared very well in recent years; many of these economies have almost completely collapsed.
B)Command economies operate the most efficiently because the government makes all the production decisions.
C)In command economies,consumers still exercise choice.
D)In a command economy,the government answers the questions of what to produce,how to produce it,and how to distribute it.

Question

Quizplus · Accepted Answer

This statement is false because command economies do not necessarily operate efficiently, as evidenced by the failure of many planned economies in recent years. In fact, because the government makes all production decisions, it can lead to inefficiencies and misallocation of resources.

Which of the Following Statements Is FALSE