Which Is Not a Principle of Economic Organization

question 29

Multiple Choice

Which is not a principle of economic organization?

• A) Markets automatically assign decision rights to those with the most useful specific knowledge.
• B) Markets automatically subsidize government owned enterprises.
• C) Markets automatically evaluate decisions, using profitability as a performance measure.
• D) Markets automatically reward good decisions.

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Definitions:

World Price

The global market price of a product or service, determined by international supply and demand.

International Trade

The exchange of goods and services between countries, allowing for the expansion of markets and access to resources, goods, and services.

Domestic Supply

The total amount of a product or service that is available for consumption or purchase within a country's borders.

Domestic Demand

The total demand for goods and services within a country, encompassing both consumer and industrial demand.