The capitalist economy involves the greatest government involvement in social decision making, including what goods should be produced, how many goods should be produced, how goods should be produced, and how goods should be distributed. Inconclusively True or False False Truc Question 4 Which of the following is characteristic of a pure capitalist economy? personal decisions are largely motivated by material incentives. O all economic activities are coordinated by national leadership. all resources are owned and managed by the state central planning is relied upon to confront the scarity issue. Question 5 1 pts Inefficiency is a shortcoming of the command economy due to less incentive to assign resources to their highest valued use. False Inconclusively True or False True 4 Question 6 Which of the following is a characteristic of a command economy? O competitive markets guide resources to highest and best uses. O economic activities are motivated by material incentives. resource use and production activities are centrally planned. all resources are privately owned