Explain why the market system is an organizing mechanism
Please provide the best answer for the statement.
Markets and price give the economic system its ability to coordinate millions of economics decisions made on a daily basis. The system is an extensive communication network for expressing the wishes of consumers to producers. The price signals given by markets direct resources to the goods and services people want and indicate where profits are to be made for producers. Producers who fail to heed the market signals are punished. Consumers also use the market price to figure out how to make the best use of their limited incomes.
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Compare and contrast production efficiency and allocative efficiency
What will be an ideal response?
Centralization of all decision making in an organization is essential to protect the interests of its shareholders
Indicate whether the statement is true or false
Profit is equal to: a. price times quantity
b. total cost times quantity. c. total cost minus total revenue. d. total revenue minus total cost.
The following input-requirements data are for Country A, a capital-abundant country that produces nothing but bread and wine using only capital and labor as inputs. 1 Pound of Bread1 Gallon of WineCapital Input5 units20 unitsLabor Input4 units10 units Following the opening of trade, Country A would probably
A. import both goods. B. export bread and import wine. C. export both bread and wine. D. export wine and import bread.