Markets Do Well in the Production and Distribution of Private

question 59

Multiple Choice

Markets do well in the production and distribution of private goods,but are not so good at ____.

• A) accumulating resources
• B) distribution of resources
• C) public services
• D) protecting sources of information
• E) developing strategies

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Definitions:

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Consumer Sovereignty

The principle that the consumer's preferences determine the production of goods and services within an economy.

Market System

An economic system where decisions regarding investment, production, and distribution are guided by the forces of supply and demand and prices mediate transactions.

Production Decisions

The process of determining what goods or services to produce, how much, and by what method.