For Whom Is a Given Mix of Goods and Services

question 94

Multiple Choice

For whom is a given mix of goods and services to be produced? How, in other words, is the product to be distributed among people when such commodities and services are available? In a market economy, this problem is resolved primarily in the:

• A)public sector through the mechanism of central planning.
• B)business sector through the mechanism of advertising.
• C)private sector through the earning and spending of income.
• D)money market through borrowing and saving by households and businesses.

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Definitions:

Subsidiary Ledger

A secondary ledger containing detailed information to support accounts listed in the general ledger, such as accounts receivable or payable details.

Accounts Receivable

Financial accounting of money owed to a business by its clients or customers for goods or services provided on credit.

Subsidiary Ledger

A subsidiary ledger is a detailed list to support a general ledger account, such as accounts receivable or accounts payable, where individual transactions with entities or items can be tracked.