23. In the socialist calculation debate, Mises argued that __________ determined

Question

23. In the socialist calculation debate, Mises argued that __________ determined in a market context were necessary for rational economic calculation.

a.   interest rates

b.   profit margins

c.   money prices

d.   costs of production

25. Hayek maintained that socialism could not work because the information that individuals use to make their decisions is

a.   present only in supply and demand functions.

b.   not captured in cost conditions.

c.   the subject of continuous discovery.

d.   none of the above.

27.        The derivation of public goods demand is analogous to the derivation of

a.   market demand.

b.   individual demand.

c.   joint supply.

d.   monopoly.

Explanation / Answer

First question is answered below

1.

Correct option: (c) money prices

Reason: As per Mises, market prices of goods and services are important for economic calculation of how to effectively allocate resources in an economy. He argued that absence of prices makes socialist economy deficient and unable to allocate resources effectively.

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