An Economist Might Say, "The Market Guides and Coordinates Individuals

question 212

Multiple Choice

An economist might say, "The market guides and coordinates individuals' actions." Which of the following is an example of this happening?

• A)An employer tells an employee to get to work early.
• B)As the price of oranges rises, more individuals begin to produce oranges.
• C)The manager of a plant issues a directive that there will be no more smoking in the cafeteria.
• D)a and c
• E)a, b, and c

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Definitions:

Adjusting Entry

Journal entries made in accounting at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Note Payable

A written promise to pay a specified amount of money, typically with interest, at a future date or dates.

Fiscal Year

A one-year period that companies and governments use for financial reporting and budgeting, which may not coincide with the calendar year.

Quick Ratio

A liquidity measure that evaluates a company's ability to cover its current liabilities with its most liquid assets, excluding inventory.