Research is when you are trying learn about something and report is when you are telling somebody about something
In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
Key terms. In its purest form, a market economy answers the three economic questions by allocating resources and goods through markets, where prices are generated. In its purest form, a command economy answers the three economic questions by making allocation decisions centrally by the government.
In a Centrally planned economy, also known as a command economy, the central government controls the factors of production and answers the three basic economic questions for all of society. Two systems often mentioned when centrally planned economies are discussed are socialism and communism.
Toys r us, the toy shop has always stood out in its advertising campaigns, using all conventional social networks, and paying to do the most original ads, spaces like Instagram, Twitter and Facebook are some of the social networking they would be using to show their potential customers the progress of the new store, but that does not end there, they will also invest big amounts of money in screens "Etch a Sketch" in bus stops, and vans promoting their new opening and inviting everyone to the big event.
The correct answer is B.
A price floor is a policy established by economic authorities that consists on setting a threshold so that the price of a certain product or service cannot decrease under that. It distorts the market outcome when it is larger than the equilibrium price, because the amount supplied at the price floor level would the larger than the amount demanded by consumers and, hence, there is an excess of supply or surplus. Therefore, <u>the market does not clear because the rationing function of prices has been externally influenced. </u>
A price ceiling is a similar policy established by economic authorities. A threshold is set so that the price of a certain product or service cannot increase over it. It distorts the market outcome when it is smaller than the equilibrium price, because the amount supplied at the price ceiling level would the smaller than the amount demanded by consumers and, hence, there is an excess of demand of shortage. Again, <u>the market does not clear because the rationing function of prices has been externally distorted. </u>
<em>A market clears when the equilibrium is reached and the amount supplied equals the amount demanded, so that the desires of both producers and consumers meet. </em>
