In a Free Market,the Price System Determines How Society's Output

question 74

Multiple Choice

In a free market,the price system determines how society's output is distributed by

• A) ensuring that low income people can buy all the necessities for living.
• B) providing goods for those willing and able to pay at least the equilibrium price.
• C) determining each person's income in the labor market according to the tax rate imposed by the state.
• D) allowing all those who desire a commodity to buy it.
• E) ensuring that each commodity is produced by the most efficient technique.

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Definitions:

Authority Structure

Pertains to the systematic arrangement of power, roles, and responsibilities within an organization or society, determining how decisions are made and enforced.

Flat Organizations

Businesses or institutions with few or no levels of middle management between staff and executives, promoting open communication.

Tall Organizations

A type of organizational structure characterized by a large number of hierarchical levels, each with a narrow span of control.

Chain Of Command

The official hierarchy in an organization that dictates the order of authority and responsibility.