Which of the Following Dictates Supply and Demand in a Market

question 57

Multiple Choice

Which of the following dictates supply and demand in a market economy?

• A)privatization
• B)production quotas
• C)price mechanism
• D)government intervention

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Definitions:

Perfect Substitutes

Goods that can be completely replaced by another with no loss of utility to the consumer.

Inputs

The resources such as labor, materials, and capital, that are used in the production process to produce goods and services.

Output

The total amount of goods or services produced by an individual, firm, industry, or economy in a given period.

Production Function

A formula detailing how input factors like raw materials and labor are turned into output or goods.