The allocative function of price is to:
A. provide subsidies to low-income families so they can purchase essential goods and services.
B. direct resources away from markets that are overcrowded and toward markets that are underserved.
C. distribute scarce goods and services to those consumers who value them the most highly.
D. ensure that firms in perfectly competitive markets earn an economic profit.
Answer: B
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The smaller the amount saved out of a change in disposable income, the
A) more horizontal the consumption function. B) larger the MPC. C) more net taxes affect consumption. D) smaller is autonomous consumption. E) smaller the MPC.
Refer to the table above. When the ________ is employed, diminishing marginal returns sets in
A) second worker B) fourth worker C) sixth worker D) eighth worker
Refer to Figure 2-4. A movement from ________ is the result of additional government restrictions on the pollution that results from plastic production
A) X to W B) Z to W C) Z to Y D) X to V
The distinctive characteristic of an oligopolistic market structure is that there are recognizable interdependencies among the decisions of the firms
a. true b. false