Which of the Following Statements Does Not Apply to a Market

question 209

Multiple Choice

Which of the following statements does not apply to a market economy?

• A)Firms decide whom to hire and what to produce.
• B)The "invisible hand" usually maximizes the income of society as a whole.
• C)Households decide which firms to work for and what to buy with their incomes.
• D)Government policies are the primary forces that guide the decisions of firms and households.

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Definitions:

Cash from Sale

The cash received from selling goods or services.

Cash Receipts Journal

A financial journal that records all cash transactions, including sales and received payments, entering a business.

Accounts Payable

Obligations of a company indicating funds due to lenders for products and services acquired through credit.

Sales Revenue

Revenue generated through the sale of products or offerings during a specific timeframe.