In a Market Economy, the Decision Regarding Allocation of Resources

question 34

Multiple Choice

In a market economy, the decision regarding allocation of resources is made by

• A)automatic forces of supply and demand.
• B)authorities in Washington, D.C.
• C)planners in state capitals.
• D)committees from a variety of economic interest groups.
• E)All of the above are correct.

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Definitions:

Compounded Monthly

An interest calculation method where interest is added to the principal balance monthly, causing the total amount of interest to grow at an increasing rate.

Compounded Annually

The method of calculating interest where the total interest is added to the principal once per year, resulting in interest earning interest annually.

Perpetuity

A type of annuity that pays a fixed sum of money to an individual indefinitely.

Compounded Quarterly

Compounded Quarterly is a method of calculating interest where the interest earned over a quarter is added to the principal, and the subsequent interest calculation will include the previously earned interest.