COMMAND ECONOMIES RECAP

Question 1

In a command economy, money's functions are reduced

Answer

true

Question 2

In a command economy capital is put at the service of the ideology supporting the regime

Answer

true

Question 3

Command economies = communism

Answer

true

Question 4

In a command economy ______________

Accepted Answer

the means of productions are controlled and owned by a central authority

Answer

the means of productions are centralised

Question 5

In a command economy, the prices of goods and services are [blank_start]regulated[blank_end] by the [blank_start]central authority[blank_end].

Accepted Answer

regulated

Accepted Answer

central authority

Answer

encouraged

Answer

proposed

Answer

the public's preferences

Answer

price elasticity

Question 6

Who sets the price of bread?

Accepted Answer

In depends on circumstances. Under duress even a market economy can set price control mechanisms or ration goods and services (for example: in war)

Answer

It depends on the economic system: either a central authority or the market or a combination of the two

Answer

Ultimately, the public - even in a command economy

Question 7

Command economies are associated with repressive regimes

Answer

true

Question 8

What is the function/role of money in a command economy?

Accepted Answer

to further the cause of the regime

Answer

store of value, unit of account and medium of exchange

Answer

nothing

Question 9

In a command economy, money is supposed to

Accepted Answer

promote stability (of the regime)

Answer

promote competition

Answer

deliver freedom of choice

Question 10

In a command economy,  development is [blank_start]planned[blank_end] and money has li[blank_start]mited[blank_end] influence in the org[blank_start]anisation[blank_end] of the e[blank_start]conomy.[blank_end]

Accepted Answer

planned

Accepted Answer

mited

Accepted Answer

anisation

Accepted Answer

conomy.

Question 11

Why was money subordinate to the five-year economic plans implemented of the former USSR?

Accepted Answer

Both reasons are correct

Answer

Because in a market economy, money gives power to influence the political system and so can be seen as 'subversive.'

Answer

Because money went against the regime's ideology

Question 12

Because in a market economy, money gives power to influence the political system, among other things, in the former USSR, it was called ______________

Accepted Answer

'subversive'

Answer

'offensive'

Answer

'criminal'

Question 13

In the former USSR the driving force of the economy was the 'Five-Years Plan'

Answer

true

Question 14

In the former USSR the driving force of the economy was fair money distribution

Answer

true

Question 15

In a command economy, enterprise

Accepted Answer

depends on the goal set by the central authority

Answer

depends on individual's initiative

Answer

depends of the state's initiative

COMMAND ECONOMIES RECAP

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