The Term Market Mechanism Refers to

question 52

Multiple Choice

The term market mechanism refers to

• A)The use of market prices and sales to signal desired output.
• B)Resource allocation based on a production possibilities curve.
• C)Resource allocation based on consumer needs.
• D)Government laws and regulations concerning how the market should operate.

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Definitions:

Buyers

Buyers are those who acquire products or services for personal use or for resale, generating demand in the market.

Per-unit Tax

A tax that is levied on each unit of a product or service sold.

Buyers

Persons or organizations that buy products or services.

Sellers

Entities or individuals who make goods or services available for purchase by consumers or businesses.