In a Market Economy, the Decision Regarding Allocation of Resources

question 34

Multiple Choice

In a market economy, the decision regarding allocation of resources is made by

• A)automatic forces of supply and demand.
• B)authorities in Washington, D.C.
• C)planners in state capitals.
• D)committees from a variety of economic interest groups.
• E)All of the above are correct.

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Definitions:

Production Data

Information related to the quantity, quality, cost, and efficiency of the production process in a manufacturing company.

Prevention Cost

Expenses incurred to avoid defects in products or services, including costs related to quality training and product design improvements.

Quality Cost Report

A report detailing the costs associated with avoiding poor quality, identifying defects, and repairing defective products, categorized into prevention, appraisal, and failure costs.

Throughput Time

The amount of time it takes for a product to go through the production process, from start to finish, including both processing and waiting time.