Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing

Search...

Role of Profit in Resource Allocation by Firms

10 Questions

1 Views

Role of Profit in Resource Allocation by Firms

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

In a planned (command) economic system, who makes all decisions about resource allocation?

Government (correct)

Producers

Market forces

Consumers

What is the main principle underlying a planned (command) economic system?

Market competition

Profit maximization

Equity (correct)

Efficiency

Consumer sovereignty

What led to shortages of some products and surpluses of others in a pure command economy?

Market demand

Government intervention

Price mechanism (correct)

Consumer preferences

What is one of the fundamental failings of a pure command economy related to worker productivity?

Incentives for workers to raise productivity Signup and view all the answers

How are decisions made in a planned (command) economic system?

By the government according to a set plan Signup and view all the answers

What is the characteristic of resource allocation in a planned (command) economic system?

Managed by the government Signup and view all the answers

Which economic system allows producers the most freedom to decide what to produce?

Free market economic system Signup and view all the answers

What is the primary motivation for producers in a free market economic system?

Maximizing profit Signup and view all the answers

In a free market economic system, how are resources allocated?

According to producers' self-interest Signup and view all the answers

Which mechanism guides resource allocation in a free market economic system?

Price mechanism Signup and view all the answers