The Market Mechanism

question 101

Multiple Choice

The market mechanism:

• A) Is an inefficient means of communicating consumer wants to producers.
• B) Relies on government control and planning.
• C) Eliminates the market failures caused by government.
• D) Relies on prices and sales to communicate consumer wants to producers.

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Definitions:

Basic Values

Fundamental beliefs or principles that guide an individual's or group's behavior and decision-making.

Chief Executive's Discretion

The extent to which a chief executive can make independent decisions without needing approval from others, often within the scope of their authority and responsibility.

Financial Reserves

involve funds or assets set aside by an organization or individual to cover future expenses, emergencies, or unforeseeable losses.

Organizational Strategy

A comprehensive plan outlining how an organization will achieve its goals and fulfill its mission over a period of time.