The Market System Is Said to Be Characterized by "Consumer

question 223

Multiple Choice

The market system is said to be characterized by "consumer sovereignty." This is because

• A) a sovereign government determines which consumer goods will be produced.
• B) the prices of consumer goods are regulated by a sovereign government.
• C) firms must match their production decisions to the consumers' choices.
• D) consumer goods are considered to be more important than capital goods.

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Definitions:

Financial Year

A period of twelve months used for accounting purposes and the preparation of financial statements, not necessarily aligning with the calendar year.

Cash Receipts Journal

A specialized accounting journal used to record all money that is received by a business.

Cash Sale

A transaction where payment for a good or service is made at the time of the sale, usually in the form of cash or equivalent.

Food Revenue

Income generated from the sale of food products or services.