In a Market Economy, the Patterns of Resource Allocation Are

question 8

Multiple Choice

In a market economy, the patterns of resource allocation are most directly influenced by ________.

• A)government administrators who monitor the equilibrium of supply and demand
• B)industry coalitions that strive to improve the efficiency of production and service
• C)consumer group alliances that negotiate with firms to improve product quality
• D)consumers who "vote" by their personal decision to buy or not buy products

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Definitions:

Opportunity Cost

The price paid for not selecting the second-best choice when deciding between options.

Rancher

An individual who owns or manages a large farm, especially one used for raising cattle, sheep, or other livestock.

Comparative Advantage

The ability of an entity to produce goods or services at a lower opportunity cost than others.

Rancher

A person who owns or manages a ranch, where livestock such as cattle or sheep are raised.