When collective decision making is utilized to resolve economic questions regarding the allocation of resources, then:
A)everyone will receive an equal share of the output produced.
B)the preferences of individuals are of no importance.
C)economic efficiency will be assured.
D)the role of markets will be replaced by political decision making.

Question

When collective decision making is utilized to resolve economic questions regarding the allocation of resources, then:
A)​everyone will receive an equal share of the output produced.
B)​the preferences of individuals are of no importance.
C)​economic efficiency will be assured.
D)​the role of markets will be replaced by political decision making.

Quizplus · Accepted Answer

When collective decision making is utilized, the role of markets (which allocate resources based on individual preferences and demand) will be replaced by political decision making. This can potentially lead to inefficiencies and distorted outcomes as political decisions may not always align with economic principles. Additionally, the allocation of resources may not be based on individual preferences, and there may be unequal distribution of output depending on the political power and bargaining ability of different groups.

When Collective Decision Making Is Utilized to Resolve Economic Questions