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:

Unproductive

Refers to a state or condition where output or efficiency is below the expected or required level.

Activity-based Costing

A pricing strategy that allocates expenses to goods or services according to the tasks they necessitate, striving for a more accurate distribution of costs.

Relevant Cost

A cost that should be considered when making decisions.

Avoidable Costs

Costs that can be eliminated if a particular decision is made, such as discontinuing a product line.