Suppose Resources Are Directed Through the Actions of a Central

question 10

Multiple Choice

Suppose resources are directed through the actions of a central planner, who receives information on all the different uses of these resources. Why might sellers have an incentive to provide untruthful information to the central planner?

• A) They want to be able to charge the minimum price for their product
• B) In order to continue producing their product, sellers may overstate the importance of their product.
• C) The information system is too complex to provide correct information.
• D) They want resources to be able to travel to the highest value uses possible

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Definitions:

Total Knee Arthroplasty

A surgical procedure to replace the damaged surfaces of the knee joint with artificial parts, to relieve pain and restore function.

Diaphragmatic Breathing

Respiration in which the abdomen moves out while the diaphragm descends on inspiration.

Rib Cage

The structure formed by the rib bones and connective tissue that encloses and protects the thoracic cavity and organs.

Inspiration

The process of pulling air into the lungs, also used to describe a powerful influence on someone's mind or creativity.