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In a Modern Market Economy, the "Invisible Hand," or Pricing

Question 17

Multiple Choice

In a modern market economy, the "invisible hand," or pricing system:


A) solves the what and for whom, while engineers solve the how.
B) solves the what and how, while the for whom is primarily determined by the tax laws passed by Congress.
C) largely solves the three basic problems of economic organization.
D) is unable to solve any basic problems with precision, because of the intensity of perfect competition.
E) largely solves the three basic problems of economic organization only during recessions.

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