In a Market-Directed System

question 125

Multiple Choice

In a market-directed system:

• A) the emphasis lies in optimizing the rate of production.
• B) the government decides what products should be produced to meet the people's needs.
• C) firms do not rely on customer satisfaction as it is impossible to measure.
• D) customer satisfaction has very little importance.
• E) it is up to each customer to decide how effectively individual firms satisfy his or her needs.

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Definitions:

Pollution Reduction

Efforts or strategies aimed at decreasing the amount of pollutants released into the environment.

Government Caps

Limits set by the government on the amount of a commodity or service that can be produced, sold, or used.

Pollution Permits

Licenses issued by governments that allow the holder to emit a certain amount of pollutants over a given time period.

Property Rights

Legal rights to use, control, and derive benefits from a resource or property, including the right to exclude others.