Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) In a centrally planned economy, decisions concerning the three essential questions are made by those who control the government.
B) In a market economy, firms do not interact with consumers.
C) The two alternative approaches to the three essential questions are market economies and command economies.
D) In a market economy, decisions concerning the three essential questions result from interactions taking place in markets.
E) In both centrally planned and market economies, the three essential economic questions are what, how, and for whom.