Question

In a price allocation system: Individual producers and consumers choose what, how, how much, and when to produce or consume. The government chooses what, how, how much, and when to produce or consume. Consumers are at the mercy of their governments as to how much they can consume. A central government makes all consumption decisions. Question 13 (1 point) Average physical product is equal to output divided by the input level True False Question 14 (1 point) For every $100 spent at the supermarket, the farm service sector accounts for about $12. True False

Answer 1

I have answered the first question for you. I hope it helps. Please don't forget to upvote.

1. A price allocation system, or more generally, a price system allocates resources according to the market forces of demand and supply. Consumers and producers express their willingness to pay and willingness to receive and an equilibrium is reached when these two match where the quantity demanded equals quantity supplied. This is how price is determined. The role of govt doesn't play any role in controlling what, how and when to produce or consume. Therefore, the correct alternative is option 1.