Assume a Perfectly Competitive Economy Would Use an Assortment of Nails

question 28

Multiple Choice

Assume a perfectly competitive economy would use an assortment of nails that weighs a total of 100 tons. However, the economy is controlled by the government and it sets a ton limit of 100 tons. When production is complete there is only one nail that weighs 100 tons. Which of the following describes what was wrong when government did the planning?

• A)Producers did not follow their personal interest in planning production.
• B)The wishes of consumers were not represented in the producer's actions.
• C)The government miscalculated the correct tonnage that the economy needed.
• D)All of these are true.

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Definitions:

Standard Deviation

A measurement of the dispersion or variation of a set of values, indicating how much the values deviate from the mean of the set.

Sampling Distribution

The pattern of likelihood for a particular statistic that originates from a random sample.

Standard Deviation

An indicator of the degree of spread or variability among a collection of figures, showing how far the values diverge from the average.

Normal Approximation

A method used in statistics to estimate the distribution of various sample statistics using the normal distribution, particularly when the sample size is large.