Which of the Following Is True

question 231

Multiple Choice

Which of the following is true?

• A) When a market price allocates resources, everyone who is able to pay the price gets the resource.
• B) A command system works well when the lines of authority and responsibility are clear.
• C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by command.
• D) When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a market price.

---

Definitions:

FOB

Free On Board, a term in international trade that indicates whether the seller or buyer is responsible for goods damaged or destroyed during shipping.

Shipping Terms

Refers to the agreed conditions between a buyer and seller regarding the delivery of goods, including the allocation of shipping costs and responsibilities.

International Transportation

The movement of goods or people across international borders, involving various modes of transport like air, sea, road, or rail.

Sight Draft

A financial document demanding immediate payment upon presentation to the drawee, commonly used in international trade to control the transfer of goods.