Answer:
D) Markets allocate goods effectively.
Explanation:
The two main principles of capitalism are that individuals are rational and act according to their best self interest, and markets will allocate goods and service more efficiently than governments.
In this case, the stores ran out of batteries and flashlights due to a sudden increase in the demand, but since the stores make a profit by selling batteries and flashlights, they immediately replenished their stocks and were able to satisfy all the customers' needs.
If the stores would have needed government permission for replenishing their inventories, they would have never done it so fast and so efficiently.
Chapter 12 is meant primarily for: A. Farmers
No, because the decision has already been made by the Board of Directors.
More about directors and decision making:
The board's decision-making process is divided into two stages: communication and decision-making. Each director decides whether to incur a cost to communicate his information to others during the communication stage. At the decision-making stage, all directors take actions (e.g., vote) based on their private information and information inferred from the discussion, and the board makes a collective decision. Directors may have conflicts of interest and thus prefer a decision that is not in the best interests of the shareholders. Directors may also have a preference for conformity and thus incur a loss if their actions differ from those of other directors, such as voting differently than the majority.
Learn more about decision making here:
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How does a subsidy affect supply?
A subsidy by nature increases the purchasing power of the individual or class it is awarded to. It's like free money that can only be spent on certain things.
