In an Economy in Which Decisions Are Guided by Prices

question 21

Multiple Choice

In an economy in which decisions are guided by prices and individual self-interest,there is

• A)the potential to achieve efficiency in production.
• B)a strong need for government intervention in the market.
• C)less efficiency than would be observed in a centrally-planned economy.
• D)more need for a strong legal system to control individual greed than would be needed in a centrally-planned economy.

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Definitions:

Regression

A psychological defense mechanism where an individual reverts to an earlier stage of development in response to stress.

Bed-Wetting

Involuntary urination while asleep after the age at which bladder control usually occurs, typically seen in children.

Psychosexual Stage

A concept in Freudian psychology that describes a series of developmental stages from childhood through adulthood, where pleasure centers on different parts of the body.

Slip of the Tongue

An unintentional error in speech where a word is misused, often revealing a subconscious thought or suppressed feeling.