It Is Difficult for a Central Planner to Determine Optimal

question 206

Multiple Choice

It is difficult for a central planner to determine optimal allocations of resources because:

• A) of the simplicity of a modern economy.
• B) of a potential lack of incentives among citizens who are asked to provide the central planner with accurate information.
• C) of too many incentives governing the central planner.
• D) the incentives exist to manipulate the resources to improve the allocations of resources.

---

Definitions:

Product Cannibalization

A situation where a new product significantly reduces the sales or market share of the company's existing products.

Media Promotion

The use of various media channels, such as TV, radio, the internet, and social media, to advertise and promote a product, service, or brand to a wide audience.

Functionally Different

Describes products, services, or roles that serve different purposes or functions, catering to various needs or preferences.

Different Distribution

The process or strategy of using various distribution channels to move products from producers to end consumers, tailored to meet distinct market demands or preferences.