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What Are the Signals That Guide the Allocation of Resources

question 259

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What are the signals that guide the allocation of resources in a market economy?


Definitions:

Personnel Department

A division of a company responsible for managing human resources and employee relations.

Investment Turnover

An indicator of how effectively a corporation utilizes its assets to produce sales or income.

Return On Investment

A profitability measure that calculates the return of an investment relative to its cost.

Profit Center

A division or segment of a company that is responsible for generating its own revenue and profit.

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