MnInumant of srailsle resnurces economic choices such as bal

MnInumant of srailsle resnurces economic choices such as balfout A fundemental difference between the command system and laissez-faire capitalism is that,in command systems O the division of output is decided by central planning rather than by individuals operating freety through markets O all economic decisions are made by the government, whereas there is no laissez-faire capitalism. O scarcity does not exist, whereas it does in laissez-faire capitalism. O money is not used, whereas it is in laissez-faire capitalism. Suppose a firm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further 26424934 2884791429 2 10028429

Solution

1st ques , answer is a)

In command system a central planning board exists which take all decisions of production while in laissez fare , free play of market forces determine production activities

2 nd ques, answer false

It is called Economic Rent