Which of the Following Is True

question 25

Multiple Choice

Which of the following is true?

• A) Force has never played an important role in allocating scarce resources.
• B) A market price always allocates resources better than a command system.
• C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by majority rule.
• D) Lotteries work best when a resource can serve just one user at a time in a sequence.

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Definitions:

Competitive Market

is a market structure characterized by numerous buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition.

Profit-Maximizing Level

The point at which a company can achieve the highest profit by adjusting production levels, where marginal revenue equals marginal cost.

Total Output

The total quantity of goods or services produced by an economy, firm, or manufacturing process within a specific time period.

Units

Basic quantitative measures used in economics and commerce to count, describe, and measure the amount of a product or commodity.