The intersection of the demand curve and the marginal-cost curve is equivalent to the socially-optimal level of output

Which of the following is a key criticism of the market economy as a system of allocation?

a. Goods and services are allocated unequally based on ability to pay. b. Producers have strong incentives to innovate because successful innovators are rewarded with higher profit. c. Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace. Since price is freely set based on supply and demand, there are few shortages or surpluses. d. None of the above.

If a person buries his money in his backyard, he is using money as a medium of exchange

a. True b. False Indicate whether the statement is true or false