Suppose Resources Are Directed Through the Actions of a Centralplanner

question 20

Multiple Choice

Suppose resources are directed through the actions of a centralplanner, who receives information on all the different uses ofthese resources. Why might sellers have an incentive to provideuntruthful 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.(True Answer
• )Correct
• 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:

Monoamine Oxidase Inhibitors (MAOIs)

A class of antidepressant drugs that work by inhibiting the activity of monoamine oxidase, thereby increasing the levels of certain neurotransmitters in the brain.

Schizophrenia

Schizophrenia is a chronic mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Antipsychotic Drugs

Medications used to treat psychotic disorders, such as schizophrenia, by altering neurotransmitter levels in the brain.

Schizophrenics

Individuals diagnosed with schizophrenia, a mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.