Which of the following statements is true concerning command economies and mixed market economies?
I. Economic decisions are primarily made by local customs within a command economy and markets help determine the prices of goods in a mixed market economy
II. The government solely determines what is produced in a command economy and tribal leaders allocate resources in a mixed market economy
III. The government and markets decide what is produced in a mixed market economy, while central planners determine how much to produce in a command economy
IV. Resources are scarce in both command and mixed market economies
A. II & IV
B. I only
C. III & IV
D. IV only
E. I & II
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Correct Answer: C, III & IV. Resources are scarce no matter the type of economy. In a command economy decisions are made by central planners while the markets and government both allocate resources in a mixed market system.