Which of the Following Statements About Markets Is False

question 146

Multiple Choice

Which of the following statements about markets is false?

• A) markets are used to allocate resources in market systems
• B) markets can vary in geographical size
• C) prices are used to allocate goods in markets
• D) markets are used to allocate resources in centrally-planned socialist economic systems
• E) supply and demand explains how prices are set in competitive markets

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Definitions:

Budget Constraint

The limitation on the consumption of goods and services imposed by a consumer's income and the prices of those goods and services.

Income

The total amount of money received by an individual or group over a specific time period, coming from various sources like wages, investments, or government assistance.

Apples

Edible fruits produced by an apple tree, characterized by their sweet taste and crisp texture, consumed worldwide.

Bananas

Edible fruits from plants of the genus Musa, commonly enjoyed worldwide and known for their nutritional value.