Which of the Following Statements About Market-Directed Economies Is NOT

question 339

Multiple Choice

Which of the following statements about market-directed economies is NOT correct?

• A)A market-directed economy adjusts itself.
• B)The American economy is completely market-directed.
• C)Consumers in a market-directed economy decide what is to be produced and by whom-through their dollar "votes."
• D)Consumers in a market-directed economy enjoy great freedom of choice.

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Definitions:

Temporary Accounts

Accounts used to record transactions during an accounting period, which are then transferred to permanent accounts at the end of the period.

Permanent Accounts

The balance sheet accounts that carry their ending balances into the next accounting period.

Accounting Period

A specific time period at the end of which an organization prepares financial statements.

Balance Sheet Accounts

Accounts that make up the financial statement showing a company's assets, liabilities, and equity at a specific point in time.