The Decision About What Goods and Services Will Be Produced

question 14

Multiple Choice

The decision about what goods and services will be produced in a market economy is made by

• A)lawmakers in the government voting on what will be produced.
• B)workers deciding to produce only what the boss says must be produced.
• C)producers deciding what society wants most.
• D)consumers and firms choosing which goods and services to buy or produce.
• E)consumers dictating to firms what they need most.

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Definitions:

GICs

Guaranteed Investment Certificates, a type of Canadian investment that offers a guaranteed rate of return over a fixed period of time.

Compounded Annually

Interest on an investment calculated once a year, taking into account both the initial principal and the interest from previous periods.

Maturity Value

The amount payable to an investor at the end of a bond's term or at the time of maturity, including both the principal and interest.

Income Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.