Question

Lola and Kira just opened their own bakery in Surrey. They are selling cakes, cupcakes, and muffins. The funds that Lola and Kira are receiving in exchange for their baked goods represent their Select one: a. profit b. variable revenues c. revenue d. profit margin e. markup

Which of the following is correct with regard to the economic system called communism? Select one: a. Overall production expands rapidly because of central planning. b. Producers and consumers control production and allocation decisions through supply and demand. c. In communism, the focus on centralized planning has caused a variety of choices in products at fair prices for consumers. d. In communist economy, the government owns all or most enterprises. e. Most government-operated enterprises are very efficient because of central planning.

Answer 1

The funds that the producers receive in return for their products is called the revenue.

Given the choices:

• profit is revenue over the cost of production.
• Revenue is not always variable.
• The funds that the producers receive in return for their products is called the revenue.
• The profit margin is the percentage of profit in revenue received.
• Markup is the difference between price and the marginal cost of production.

Therefore, the correct option is: (c)

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The social system called communism is a system of society where the resources are owned by the community or central planner. In communism, the government owns most or all of the resources of the economy.

Given the choices:

• The centrally planned economy cannot ensure the rapid growth of the economy, which is dependent on various other factors such as efficient allocation and technology.
• A social system where the producers and consumers own the resources is called a socialist economy or socialism.
• Central planning is not associated solely with communism, it is a planning system of economy and communism is a social structure.
• In communism, most resources are owned by the government.
• The efficiency of centrally owned enterprises does not depend on social structure it is subject of efficient allocation of resources.

Therefore, the correct option is: (d)