Which of the Following Statements Is True About a Market

question 27

Multiple Choice

Which of the following statements is true about a market economy?

• A) With a large enough computer, central planners could guide production more efficiently than markets.
• B) Market participants act as if guided by an invisible hand to produce outcomes that maximize social welfare.
• C) The strength of a market system is that it tends to distribute resources evenly across consumers.
• D) Taxes help prices communicate costs and benefits to producers and consumers.

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Definitions:

Point Factor Rating Method

A systematic approach used in job evaluation that assesses jobs based on a range of factors, each assigned a point value based on its importance.

Benchmarking

A process of measuring products, services, and practices against those of leading companies to identify areas for improvement.

Education Level

The highest degree or level of school completed by an individual.

Equal Pay Act

Legislation requiring that men and women be given equal pay for equal work in the same establishment.