In a marketplace, prices:
A) act as a measure of value, and do not affect the allocation of resources.
B) act as incentives that allow for the efficient allocation of resources.
C) are determined by politicians and regulators.
D) are determined through auctions.
B
You might also like to view...
Sarah used to be a music teacher at a local school, but got let go last year due to budget cuts. Sarah now works part-time as a waitress while looking for another teaching job. Sarah would be considered:
A. frictionally unemployed. B. underemployed. C. structurally unemployed. D. real-wage unemployed.
Individuals, firms, and nations should specialize in those activities which have the highest marginal cost
a. True b. False Indicate whether the statement is true or false
If the economy is on the aggregate supply curve but to the right of the aggregate demand curve, which of the following will be the first market force to lead the economy toward an equilibrium?
a. At the current output level, prices will be too low and firms will increase their prices. b. At the current price level, output will be too low, inventories will diminish, and firms will increase their production. c. At the current output level, prices will be too low and firms will lower their prices. d. At the current price level, output will be too high and so prices will drop so that output will drop. e. At the current price level, output will be too high, inventories will pile up and firms will cut back on their production.
The disruption caused by international trade is
a. fundamentally different from some of the other disruptions caused by the other workings of a market economy. b. not fundamentally different from all the other disruptions caused by the other workings of a market economy. c. fundamentally different from all the other disruptions caused by the other workings of a market economy. d. not fundamentally different from some of the other disruptions caused by the other workings of a market economy.