Economic Organization in the Capitalist Economy Is Achieved Through Markets

question 3

True/False

Economic organization in the capitalist economy is achieved through markets by the price mechanism and through firms by internal administration.

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Definitions:

Market Price

The present rate at which a service or asset is available for sale or purchase in the open market.

Equilibrium Level

The state at which market supply and demand balance each other, resulting in stable prices and quantities.

Surplus

The amount by which the quantity supplied of a product exceeds the quantity demanded at a specific (above-equilibrium) price.

Equilibrium Level

The state of balance where market forces such as supply and demand are equal, often used in the context of prices and quantities in markets.