Which of the Following Can Explain Why Many Economists Have

question 133

Multiple Choice

Which of the following can explain why many economists have often compared the functioning of worldwide markets to that of a computer?

• A) Worldwide markets can allocate resources randomly just as a computer can generate random data.
• B) Without the use of computers, markets cannot solve the information problem of resource use.
• C) Without the use of computers, markets cannot solve the allocation problem of resource use.
• D) Worldwide markets can solve very large resource-allocation problems by simply using the price signal mechanism.

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Definitions:

Activation Energy

The minimum amount of energy required to initiate a chemical reaction or the energy barrier to the reaction's progress.

Reaction-Energy Diagram

A graphical representation showing the energy of a system as reactants transform into products during a chemical reaction, usually highlighting energy barriers and stable intermediates.

Rate-Limiting

Describes the slowest step in a chemical reaction pathway or process, which determines the overall reaction rate.

Exothermic

A chemical reaction that releases energy by light or heat.