The role that prices play in distributing scarce goods and services to those consumers who value them the most highly is known as the ________ function of price.

Which of the following investments is most ideal for a lender?

a. An investment that yields a nominal interest of 6 percent per year in a country that faces an inflation of 2 percent per year b. An investment that yields a nominal interest of 4 percent per year in a country that faces an inflation of 2 percent per year c. An investment that yields a nominal interest of 200 percent per year in a country that faces an inflation of 200 percent each year d. An investment that yields a nominal interest of 50 percent per year in a country that faces an inflation of 70 percent each year

Consider Larry's decision to go to college. If he goes to college, he will spend a total of $120,000 on tuition, $30,000 on room and board, and $3,500 on books over four years. If he does not go to college, he will earn $30,000 annually working in a store and spend $7,000 on room and board each year. Larry's cost of going to college is

a. $123,500. b. $153,500. c. $190,500 d. $245,500