In a market economy, resources are allocated:
a. by central planners using a price system.
b. by decentralized planners at the local level.
c. by individual decision makers responding to market prices.
d. by government bureaucracies because of the absence of a price system.
Question 2
The concept that it is very difficult to consistently pick winners in the stock market without inside information is known as:
a. a random walk.
b. a double coincidence of wants.
c. the crowding out effect.
d. arbitrage.
