What does price do?
What will be an ideal response?
-allocates
-encourages conservation
-ensures that products go to those who value them most highly
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The Taylor rule is consistent with the Fed's dual mandate of
A) stable exchange rates and price stability. B) price stability and maximum sustainable employment. C) financial market stability and stable exchange rates. D) maximum sustainable employment and financial market stability.
Suppose that Firestone Tires buys raw rubber for $5,000 and then uses this to make tires it sells for $20,000 . As a result, GDP has risen by:
a. $20,000 b. $5,000 c. $15,000 d. $25,000
An example of an intangible good is: a. an automobile. b. a new house
c. a snowplow. d. friendship.
When a positive externality is present in a market, the quantity consumed:
A. is the same as the socially optimal quantity. B. is often more than the socially optimal quantity. C. is less than the socially optimal quantity. D. is always more than the socially optimal quantity.