Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?

• A) The command system is remarkable at providing price signals that guide resources in a way that maximizes social surplus.
• B) Market economies minimize waste and provide incentives for all market participants to promote their own interests.
• C) The coordination of different economic agents and bringing them together to trade is a central problem of a free market economy.
• D) The broader interests of societies are met more often in a command system than in a market system.

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Definitions:

Journal Entry

A record in accounting that shows a business transaction and its effect on the accounts, typically involving a debit and credit.

Interest Expense

The cost incurred by an entity for borrowed funds, referring to the interest payments made on any form of debt for a specific period.

Notes Payable

Notes payable are written agreements where a borrower agrees to pay back a specified amount of money, plus interest, to a lender by a certain date.

Issuance

The process of distributing new or existing securities for sale to investors.