In Order for a Central Planner to Achieve the Invisible-Hand

question 173

Multiple Choice

In order for a central planner to achieve the invisible-hand type efficiency of a free market, the planner would

• A)need masses of statistics.
• B)be required to makes enormous calculations.
• C)need to be able to measure a consumer's marginal utility in order to equate MU with MC.
• D)All of the above would be required.

---

Definitions:

Payroll Checks

Payments made to employees for the work they have done, often processed through a company's payroll system.

Current Liabilities

Current liabilities are obligations a company needs to pay off within a year, such as accounts payable, short-term loans, and accrued expenses.

Company's Liquidity

A measure of a firm's ability to meet its short-term obligations using its most liquid assets.

Internal Accounting Control

Procedures and policies implemented by a company to ensure the integrity and accuracy of its financial and accounting information.