As Methods of Economic Organization, the Market and the Public

question 106

Multiple Choice

As methods of economic organization, the market and the public sector are similar in which of the following ways?

• A) Income and power are distributed equally in both sectors.
• B) In both sectors, economic activity is undertaken only when it satisfies the criterion for economic efficiency.
• C) In both sectors, economic exchange is completely voluntary.
• D) Someone must cover the cost associated with the provision of scarce goods in both sectors.

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Definitions:

Lower Prices

Reduced costs of goods or services offered to consumers, often used as a strategy to increase demand or market share.

Market Share

The portion of a market controlled by a particular company, expressed as a percentage of total sales in the industry.

New Customers

Individuals or entities that have recently started purchasing goods or services from a business.

Business Plan

A document that outlines a company's future objectives and strategies for achieving them, often crucial for securing financing.