Prices Are Useful in Coordinating Society's Economic Planning Because

question 195

Multiple Choice

Prices are useful in coordinating society's economic planning because

• A)they convey information about which goods are scarce and which are plentiful.
• B)economies based on price systems are more flexible than centrally planned economies.
• C)economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society's output.
• D)All of the responses are correct.

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Definitions:

Risk

The potential for loss or the chance that an investment's actual return will differ from the expected outcome.

Debts

Money owed by one party to another, which is to be repaid according to terms agreed upon by both parties.

Revenue Account

An account that records the income generated from the sale of goods and services.

Debit Balance

An account balance where total debits exceed total credits.