Which of the Following Statements Does Not Apply to a Market

question 209

Multiple Choice

Which of the following statements does not apply to a market economy?

• A)Firms decide whom to hire and what to produce.
• B)The "invisible hand" usually maximizes the income of society as a whole.
• C)Households decide which firms to work for and what to buy with their incomes.
• D)Government policies are the primary forces that guide the decisions of firms and households.

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Definitions:

Membranous Labyrinth

A network of fluid-filled passages and cavities within the inner ear, instrumental in the sense of balance and hearing.

Endolymph

A fluid within the inner ear's membranous labyrinth, crucial for transmitting sound and balance signals to the brain.

Temporal Bone

A bone situated at the sides and base of the skull, contributing to the skull structure and housing the organs of hearing and balance.

Organ of Hearing

The ear, which is responsible for detecting sound waves and converting them into electrical signals that can be interpreted by the brain as sound.