Which of the Following Statements Does Not Apply to a Market

question 388

Multiple Choice

Which of the following statements does not apply to a market economy?

• A) Firms decide whom to hire and what to produce.
• B) The "invisible hand" usually maximizes the well­being of society as a whole.
• C) Households decide which firms to work for and what to buy with their incomes.
• D) Government policies are the primary forces that guide the decisions of firms and households.

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Definitions:

Beothuk

An indigenous people native to Newfoundland, Canada, known for their tragic extinction in the early 19th century due to European diseases, violence, and displacement.

Newfoundland and Labrador

The easternmost province of Canada, consisting of the island of Newfoundland and mainland Labrador to the northwest.

Critical Race Theory

An intellectual framework that examines society and culture as they relate to categorizations of race, law, and power, emphasizing the effects of racism.

Racism

Racism involves prejudice, discrimination, or antagonism directed against people on the basis of their race or ethnicity, often rooted in the belief that one race is superior to others.