In a Market Economy, How Are Resources Allocated

question 139

Multiple Choice

In a market economy, how are resources allocated?

• A) by central planners using a price system
• B) by decentralized planners at the local level
• C) by government bureaucracies because of the absence of a price system
• D) by individual decision makers responding to market prices

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Definitions:

Human Characteristic

Traits or features that are inherently part of being human, including biological, psychological, and social attributes.

Schooling

The process of receiving formal education, typically in an institutional setting such as a school.

Priming Method

A technique in psychology used to train people's memory both in positive and negative ways by presenting them with information that influences their subsequent actions or responses.

Implicit Memory

A type of memory that enables us to perform tasks without conscious awareness of these previous experiences.