What is an advantage of a market economy in the allocation of resources?A. It guarantees suppliers will make a profit.B. It fixes prices based on costs of production.C. It ensures that all consumers are willing to pay the same price.D. It indicates the relative demand for goods and services.

The allocation of resources in a market economy is described by which of the following statements?The government decides which goods will be produced and which consumers will receive them.Buyers and sellers exchange goods and services on a voluntary basis.Prices and costs help producers decide whether they are producing too little or too much of a good. aI only bII only cIII only dI and III only. eII and III only.

The fundamental difference between a market economy and a command economy lies in which of the following? aAbsolute and comparative advantages bSpecialization and trade cProperty rights and protection of private property dPositive and negative externalities eTaxes and subsidies

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?Group of answer choicesThe equilibrium price and quantityIncomes of and prices paid by buyersProfits and costs to firmsConsumer and producer surplus

When technology increases the supply of a good and lower prices increase the quantity demanded, A. the economy is reallocating resources to achieve an efficient allocation. B. consumer surplus falls. C. the invisible hand is unnecessary. D. the marginal benefit of the good increases with the quantity produced. E. the economy is no longer efficient because the quantity changes.

The signals that guide the allocation of resources in a market economy areGroup of answer choicesprices.surpluses and shortages.government policies.quantities.