In a Market System, the What, How and for Whom

question 158

Multiple Choice

In a market system, the what, how and for whom questions in economics are determined by

• A) those who are not in the market.
• B) buyers and sellers together.
• C) the central authority.
• D) no one.

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Definitions:

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund public expenditures, providing revenue for government functions.

Elasticities

Measures in economics that indicate how changes in one variable, such as price or income, affect a change in another variable, such as demand or supply.

Demand Curves

A graph showing the relationship between the price of a good and the quantity of that good that buyers are willing to purchase at various prices.

Supply Curves

Diagrams indicating how the quantity of a product offered by sellers varies with price, illustrating market supply dynamics.