The Capitalist Economy Comprises Two Forms of Economic Organization,the Market

question 35

Multiple Choice

The capitalist economy comprises two forms of economic organization,the market mechanism operated by prices and the administrative mechanism of firms.

• A)The market mechanism is referred to as the "visible hand" while the administrative mechanism of firms is referred to as the "invisible hand"
• B)The market mechanism is referred to as the "invisible hand" while the administrative mechanism of firms is referred to as the "visible hand"
• C)The simultaneous operation of both "hands" means that the capitalist system is often referred to as an "ambidextrous organization"
• D)The notion of the capitalist economy as governed by market processes is a myth.In reality the global capitalist economy is controlled by large corporations.

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Definitions:

Domain-Relevant Skills

Specific abilities and knowledge required to perform effectively in a particular field or area of work.

Intrinsic Task Motivation

The drive to undertake a task due to the inherent satisfaction and interest it provides, rather than for external rewards.

Creativity-Relevant Processes

Refers to the methods and approaches that facilitate the generation of novel and valuable ideas within an individual or a group.

Extrinsic Environmental Components

External factors that influence an organization's performance, including economic, political, and social conditions.