In a Market System, Decisions About How to Allocate Resources

question 218

Multiple Choice

In a market system, decisions about how to allocate resources are made:

• A)by central planning boards in each industry.
• B)by a lottery system.
• C)by individuals and firms interacting in markets coordinated by market prices.
• D)by large conglomerates working cooperatively with the government.
• E)based upon tradition.

Comprehend the genetic contributions to posttraumatic stress disorder (PTSD).

Analyze the role of life experiences and social circumstances in the development of depressive disorders, with a focus on gender differences.

Evaluate the reliability, validity, and problems associated with the MMPI.

Identify and describe the challenges in diagnosing and labeling mental disorders.

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Definitions:

Marginal Returns

The additional output that is produced by using one more unit of a variable resource, keeping all other inputs constant.

Nonlabor Resources

are inputs in the production process that are not related to work or effort by employees, such as capital, land, and materials.

Diminishing

Refers to the principle where increasing one input, while holding others constant, will eventually yield lower per-unit returns.

Long Run

In economics, a period in which all factors of production and costs are variable, and firms can enter or exit the market.