Price Is the Coordinating Mechanism in a Planned Economy

question 20

True/False

Price is the coordinating mechanism in a planned economy.

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Definitions:

Option Contract

An agreement providing the buyer the right, but not the obligation, to buy or sell an asset at a predetermined price within a specific timeframe.

Consideration

An item of worth traded between individuals in a contract to render the agreement enforceable by law.

Final Decision

A conclusive determination or resolution in a process or dispute, often implying that no further discussion or appeal is anticipated.

Preexisting-Duty Rule

A rule in contract law stating that an agreement to do what one is already legally obligated to do does not constitute valid consideration for a new contract.