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When Prices Are Determined in a Free-Market System

Question 1

Multiple Choice

When prices are determined in a free-market system


A) changes in the economy can be foreseen by officials.
B) resources are allocated without conscious central coordination.
C) firms respond to changes in the economy mainly by altering the wage rate.
D) demand shifts,caused by price changes,coordinate all necessary changes in the economy.
E) supply shifts,caused by price changes,coordinate all necessary changes in the economy.

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