Which of the Following Is NOT True About a Market-Directed

question 130

Multiple Choice

Which of the following is NOT true about a market-directed economy?

• A) Consumers enjoy maximum freedom of choice.
• B) Producers enjoy maximum freedom of choice.
• C) The interaction between consumers and producers is great.
• D) Government is responsible for setting up all marketing activities.
• E) The price of a consumer product serves as a measure of its value.

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Definitions:

Perfectly Inelastic

Describes a situation where the quantity demanded or supplied is completely unresponsive to price changes.

Excise Tax

A tax levied on specific goods or services, such as tobacco, alcohol, and gasoline, often intended to discourage their use or generate revenue.

Consumers

People or collectives who buy products and services for their own consumption.

Price Floor

A minimum price buyers are required to pay for a good or service; a form of price control.