The Impossibility Theorem Implies That Once the Free Market Pricing

question 57

True/False

The Impossibility Theorem implies that once the free market pricing system is abandoned, and there is no way of determining aggregate social preferences.

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Definitions:

Labor

Utilizing human physical and mental prowess in the production and servicing of goods.

MRP

The marginal revenue product, which is the additional revenue generated from using one more unit of a factor of production.

Wage Rate

The amount of money paid to an employee per unit of time or for each unit of output produced.

Demand Schedule

A table or graph that shows the quantity of a good or service that consumers wish to buy at each price level.