Suppose Resources Are Directed by Means of a Central Planner

question 212

Multiple Choice

Suppose resources are directed by means of a central planner who receives information on all the different uses of these resources. Why might sellers have an incentive to not provide truthful information to the central planner?

• A) Sellers want to be able to charge the minimum price for their product.
• B) In order to continue producing their product, sellers may overstate the importance of that product.
• C) The information system is too complex to provide correct information.
• D) They want resources to be able to travel to the highest-value uses possible.

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Definitions:

Blu-Ray DL

Blu-ray DL stands for Dual Layer Blu-ray disc, offering a larger storage capacity compared to single-layer discs, typically up to 50 GB.

8 GB Of Data

A unit of digital information storage equivalent to approximately 8 billion bytes.

Storage

Refers to devices or media that can hold data, such as hard drives, SSDs, memory cards, and cloud storage.

Minimizing Costs

Strategies or methods employed to reduce expenses in operations, manufacturing, or project management without compromising the quality.