Which of the following is true in a market economy?
A. Central planners determine answers to the basic economic questions.
B. Resources are used efficiently.
C. The distribution of wealth is equal.
D. Information for production and distribution decisions pass directly to buyers from the government.
Answer: B
You might also like to view...
Refer to Figure 2-4. A movement from X to Y
A) is the result of advancements in plastic production technology only, with no change in food production technology. B) could be due to a change in consumers' tastes and preferences. C) is the result of advancements in food production technology only, with no change in the technology for plastic production. D) could occur because of an influx of immigrant labor.
As the IS curve becomes steeper, we know that
A) a given change in the money supply will cause a larger change in output. B) a given change in the money supply will cause a smaller change in output. C) a given change in the money supply will cause the same change in output. D) monetary policy becomes more effective.