Which of the Following Statements Is False

question 186

Multiple Choice

Which of the following statements is false?

• A) In a free-market system, the basic economic questions are answered without the help of a central government plan or directive.
• B) Individuals guided by their own self-interest will produce products and services that other people want.
• C) The basic coordinating mechanism in a free-market system is quantity adjustments toward equilibrium.
• D) In a free-market system, competition forces firms to adopt efficient production techniques.

Analyze the macroeconomic theory related to the impacts of wealth, interest rates, and government spending on the economy.

Understand the historical context of macroeconomic policies and their evolution over time, particularly during significant economic downturns like the Great Depression.

Interpret macroeconomic data, including GDP, and understand its implications for economic policy and performance.

Recognize the impact of international factors, such as exchange rates and foreign price levels, on the domestic economy.

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Definitions:

Novation

The process of replacing an existing obligation with a new one, substituting a party or terms in a contract with the consent of all parties involved.

Rules of Interpretation

Guidelines and principles used to determine the meaning and intention of legal texts and statutory provisions.

Doctrine of Privity

A principle in contract law stating that contracts are binding only upon the parties signing the contract and no third party can enforce or be bound by the contract.

Contract Law

The body of law that governs the formation, enforcement, and interpretation of contractual agreements.