Which of the following statements is true?
A) The command system is remarkable at providing price signals that guide resources in a way that maximizes social surplus.
B) Market economies minimize waste and provide incentives to all market participants to promote their own interests.
C) Coordination of different economic agents and bringing them together to trade is a central problem of a free market economy.
D) The broader interests of societies are met more often under a command system in comparison to a market system.
B
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Consider the same market for nonalcoholic beer as in the previous question. How many "units" of beer will Cudweiser produce?
a. 667 b. 1,667 c. 2,333 d. 3,000
The Fed loses some control over the interest rate once it targets the money supply,
a. but the interest rate doesn't move in an inappropriate direction with respect to the Fed's monetary policy b. and the interest rate often moves in the opposite of the targeted direction c. but it can still dictate what the interest rate will be d. and loses as well control over open market operations which are linked to the interest rate e. but still maintains indirect control through open market operation