Which of the Following Is True

question 87

Multiple Choice

Which of the following is true?

• A)When resources are allocated on the basis of personal characteristics,all people who are willing and able to pay the price get the resource.
• B)When the range of activities to be monitored is large and complex,a command system allocates resources better than a market price.
• C)When a market price allocates resources,some people who are willing and able to pay that price don't get the resource.
• D)Force provides the state with an effective method of transferring wealth from the rich to the poor.
• E)When resources are allocated by force,people with the "right" characteristics get the resources.

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Definitions:

Sales Discounts

A reduction in the price of goods or services offered to customers, usually as an incentive for early payment or bulk purchases.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Account Receivable

Accounts Receivable are amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Write Off

An accounting action taken to recognize that an asset has lost its value and is removed from the balance sheet.