Which of the Following Statements Is True About a Market

question 35

Multiple Choice

Which of the following statements is true about a market economy?

• A)With a large enough computer, central planners could guide production more efficiently than markets.
• B)Market participants act as if guided by an invisible hand to produce outcomes that maximise social welfare.
• C)The strength of a market system is that it tends to distribute resources evenly across consumers.
• D)Taxes help prices communicate costs and benefits to producers and consumers.

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Definitions:

Revenue

The entirety of income that a company earns from the transactions tied to its fundamental operational services or product sales.

Accounts Payable

Short-term liabilities representing amounts due to suppliers or creditors for goods and services received but not yet paid for.

Correcting Entry

An entry made in the accounting records to amend a previously made error or oversight.

Rent Expense

The cost incurred by a business to use property or equipment for operational purposes, typically reported on the income statement.