Prices direct economic activity in a market economy by
a. influencing the actions of buyers and sellers.
b. reducing scarcity of the goods and services produced.
c. eliminating the need for government intervention.
d. allocating goods and services in the most equitable way.
A
You might also like to view...
Refer to the table above. Which is the optimum location for the firm to set up its factory?
A) Far B) Close C) Very Far D) Very Close
Which of the following variables is fixed in the aggregate expenditure model?
A) output B) real GDP C) consumption D) investment E) price level
Behavioral economists have found that people ______________, and this leads to irrational decisions.
A. often forget money is fungible B. often undervalue opportunity costs C. often forget to ignore sunk costs D. All of these statements are correct.
Which of the following will cause an increase in the debt-to-GDP ratio?
A) a reduction in the real interest rate B) a reduction in the ratio of the primary deficit to GDP C) a reduction in the growth rate of output D) all of the above