Question：In a free market economy, the price mechanism:
A. Allocates resources
B. Aids government control
C. Reduces unfair competition
D. Measures national wealth
The correct answer is: Allocates resources
In a free market economy, it is the interaction of supply and demand through the price mechanism that determines what should be produced and who should get it.
Question：Which of the following is a benefit of decentralisation?
A. Improves the motivation of junior managers
B. Reductions in bureaucracy
C. Decisions are made at one place in the organisation
D. Better crisis management
The correct answer is: Improves the motivation of junior managers
While the other options may arise in a decentralised organisation, they are not necessarily features that are specifically associated with decentralisation.
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