What Does a Market Economy Use to Determine the "What

question 155

Multiple Choice

What does a market economy use to determine the "what is produced, how, and for whom" problems?

• A)A price system
• B)The government
• C)An election
• D)A tax system
• E)Command and control

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Definitions:

Complexity

The extent to which an organization divides labor vertically, horizontally, and geographically.

Diffusion

The process by which innovations, ideas, or trends spread within a society or from one society to another.

Innovation

The act of implementing novel concepts, techniques, or goods to enhance productivity, efficiency, or gain a competitive edge.

Compatibility

The degree to which two or more systems, processes, or entities can work together without conflict or alteration.