The Price System Is Sometimes Criticized in That It

question 27

Multiple Choice

The price system is sometimes criticized in that it

• A)leads to greater efficiency.
• B)results in allowing the rich get a disproportionate say in what goods and services are produced.
• C)coordinates activities without the need for planning by government agencies.
• D)relies too heavily on input-output analysis.

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Definitions:

Introduction

The initial section or the beginning part of a document, presentation, or text, aiming to give an overview or background of the subject matter.

Long-Run Equilibrium

A state where supply equals demand and all markets are in balance, typically achieved over a period where all inputs can be adjusted.

Perfectly Competitive

A market structure characterized by a large number of small firms, with free entry and exit, where no single firm can influence the market price.

Monopolistically Competitive

An economic framework where numerous companies offer products that are alike but not exactly the same, granting them a certain level of influence over the market.