The market mechanism benefits society by ensuring that ________
A) more people will want to buy more BlackBerrys
B) society will maintain the current standard of living
C) resources are used to increase the benefits of low-value products
D) scarce resources are channeled into products most desired by society
E) raw materials and labor flow into the production of goods with lowest demand
D
Explanation: D) When scarce resources are used for the production of products that the public wants, the profits of the companies producing those products will increase and the company will have a greater capacity to produce more products that the public wants. This is the market mechanism. The business becomes more profitable, the public demands more of the desired products, the resources and labor are used, which then raises prices and wages, and more resources flow into the production of the highly desired products.
You might also like to view...
Checking to see if the new system is doing what it is supposed to do is part of:
a. systems implementation b. systems maintenance c. post-implementation review d. systems operation
Which of the following risks is most closely associated with the strategy of brand extension?
A) brand flanking B) counterfeiting C) controlling the use of an image owned by the company D) negotiating a relationship with a brand ally E) losing focus of the core positioning of the brand
The income statement and a partial balance sheet of Hart Alloy Company for the year ended December 31, 2018 is presented below. Prepare the operating activities section of the statement of cash flows using the direct method. Accrued Liabilities relate to miscellaneous operating expenses.
Notes receivable are classified as current liabilities regardless of the time to maturity.
Answer the following statement true (T) or false (F)