The Idea That Consumers Ultimately Dictate What Will Be Produced

question 66

Multiple Choice

The idea that consumers ultimately dictate what will be produced by choosing what to purchase is known as

• A) laissez-faire.
• B) the economic problem.
• C) centralized decision making.
• D) consumer sovereignty.

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Definitions:

After taxes

Refers to the net income after all tax expenses have been deducted.

Compounded Monthly

A method of calculating interest whereby the accumulated interest is added back to the principal sum, and future interest is calculated on the new total each month.

Student Loans

Borrowed money that is used to pay for higher education expenses, which must be repaid with interest.

Compounded Monthly

A method where interest earnings are calculated and added to the principal sum each month, leading to increased interest in the next period.