Prices are useful in coordinating society’s economic planning because
A. they convey information about which goods are scarce and which are plentiful.
B. economies based on price systems are more flexible than centrally planned economies.
C. economies based on price systems are more likely than centrally planned economies to minimize the cost of producing society’s output.
D. All of the responses are correct.
Answer: D
You might also like to view...
Which of the following is an example of a capital input?
a. a computer b. a share of stock c. an hour of a worker's time d. $50,000
The redistribution of private income and wealth within poor nations is sufficient to eliminate global poverty.
Answer the following statement true (T) or false (F)
An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
Assumptions in models tend to make
A. the model more realistic. B. the model predict what the scientist wants the results to be. C. the model more applicable to specific circumstances. D. the model always predict the future accurately.