In a Free Market, Economic Activity Is Coordinated by

question 5

Multiple Choice

In a free market, economic activity is coordinated by

• A)central planners.
• B)prices.
• C)costs.
• D)majority rule.

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Definitions:

Cost of Goods Sold

The total cost associated with producing goods that have been sold, including raw materials, labor, and overhead.

Accounts Receivable

Money owed to a company by its customers for goods or services provided on credit.

Income Tax Expense

The amount of money a company pays in taxes based on its earnings.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, highlighting the business's operating, investing, and financing activities.