The Authority to Make Decisions Without Reference to Specific Rules

question 75

Multiple Choice

The authority to make decisions without reference to specific rules or facts, using instead one's own judgment is referred to as

• A)exchange.
• B)interchange
• C)system transfer.
• D)discretion.

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Definitions:

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand in a market.

Equilibrium Price

The cost at which the amount of products offered matches the amount of products requested.

Equilibrium Quantity

The quantity of goods supplied that is exactly equal to the quantity of goods demanded at the market equilibrium price.

Invisible Hand Principle

Adam Smith's concept that self-interested behaviors in a free-market economy lead to economic benefits for all.