Which Tools Allow Economists to Determine If the Allocation of Resources

question 88

Multiple Choice

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?

• A)profits and costs to firms
• B)consumer and producer surplus
• C)the equilibrium price and quantity
• D)incomes of and prices paid by buyers

---

Definitions:

Moving Average

A statistical method used to analyze data points by creating a series of averages of different subsets of the full data set, commonly used in financial markets to identify trends.

Head-And-Shoulders Formation

A technical analysis pattern used to predict reversals in financial markets, characterized by a peak (shoulder), followed by a higher peak (head), and another lower peak (shoulder).

Price Index

An indicator showing the average relative price changes for a specific basket of goods and services over time.

Moving Averages

A method used in technical analysis that smooths out price data by creating a constantly updated average price over a specific time period.