The Market Mechanism

question 118

Multiple Choice

The market mechanism

• A) Is not a very efficient means of communicating consumer demand to the producers of goods and services.
• B) Works through central planning by government.
• C) Eliminates market failures created by government.
• D) Works because prices serve as a means of communication between consumers and producers. Buyers choose how much to buy based on price; profitability and therefore production are driven by prices.

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Definitions:

Anal Retentive

Gaining pleasure from retaining the bowels.

Self

The individual's awareness of their own identity and personal characteristics, often including self-concept, self-esteem, and self-image.

Ego

In psychoanalytic theory, the part of the personality that mediates between the desires of the id, the rules of the superego, and the realities of the external world.

Psyche

A term used in psychology to refer to the mind, encompassing conscious and unconscious aspects of mental processes, personality, and emotions.