Which of the following statements best characterizes a basic difference between market economies and centrally planned economies?
A)Society relies more upon prices to allocate resources when the economy is centrally-planned than when it is market-based.
B)The self-interest of households is reflected more fully in the outcome of a centrally-planned economy than in the outcome of a market economy.
C)Government plays a larger role in the economic affairs of a market economy than in the economic affairs of a centrally planned economy.
D)None of the above are correct.

Question

Quizplus · Accepted Answer

In a market economy, prices are used to allocate resources, and the self-interest of households is reflected in market outcomes. In a centrally planned economy, the government plays a larger role in economic affairs.

Which of the Following Statements Best Characterizes a Basic Difference