Why Is It Necessary for All Economic Systems to Not

question 143

Multiple Choice

Why is it necessary for all economic systems to not only provide people with goods and services,but also restrict them from getting as much of these goods and services as they wish?

• A) Failure to do this could reduce the efficiency of the system by producing some goods and services that are not as highly valued as others.
• B) Failure to do this could lead to an inequitable allocation of goods and services produced.
• C) Failure to do this could lead to drastic shortages of good and services.
• D) Failure to do this could reduces efficiency and leads to an inequitable allocation of output.

---

Definitions:

Accuracy

The extent to which the outcome of a calculation, measurement, or specification matches the accurate value or a standard.

Audit Function

The process of examining financial records and transactions by a third party to ensure accuracy and compliance with accounting standards.

Financial Statements

Comprehensive reports created to present a company's financial performance, financial position, and cash flows over a specific period.

Audit Report

A formal statement issued by an auditor at the conclusion of an audit process, summarizing their opinion on an entity's financial statements.