The role that prices play in directing resources away from overcrowded markets and towards markets that are underserved is known as the ________ function of price.

A. market
B. allocative
C. rationing
D. transitive


Answer: B

Economics

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In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________

A) increase; increase B) decrease; increase C) decrease; decrease D) increase; decrease

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Elasticity measures how "sensitive" consumers are by measuring their change in ____ as the price of the product changes

a. attitude b. income c. quantity demanded d. supply e. taxes

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Losers from inflation include:

A. those on a fixed income and savers. B. landlords and the government. C. borrowers and the government. D. those on a fixed income and borrowers.

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