The Following Question Are Based on the Following Circular Flow

question 47

Multiple Choice

The following question are based on the following circular flow diagram:

-In a free market,the price system provides for an adequate rate of growth by

• A) making the augmentation of a society's resources unprofitable.
• B) ensuring an upward-sloping supply curve.
• C) meeting each consumer's demand.
• D) providing strong incentives for firms to introduce new technology.
• E) ensuring that each good is produced in the proper amount.