When the Market Mechanism Is Allowed to Operate Freely,prices Will

question 16

Multiple Choice

When the market mechanism is allowed to operate freely,prices will determine

• A)Only the mix of output to be produced and the resources to be used in the production process.
• B)Only the resources to be used in the production process and for whom the output is produced.
• C)The mix of output to be produced,the resources to be used in the production process,and for whom the output is produced.
• D)Only for whom the output is produced and the mix of output to be produced.

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Definitions:

Government Transfer Programs

Policies and initiatives where the government redistributes income through mechanisms such as social security, welfare, and unemployment benefits.

Social Security

A government program that provides financial assistance to people with inadequate or no income, particularly the elderly, disabled, and survivors.

Medicare

A federal health insurance program in the United States for people aged 65 and older, as well as for some younger individuals with disabilities.

Federal Budget Deficit

The financial shortfall when the federal government's expenditures exceed its revenues in a fiscal year.