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. reducing opportunity cost of goods and services produced.
d. allocating goods and services in the most equitable way.
a
Economics
You might also like to view...
In 1980 the highest marginal tax rate was
A. 28 percent. B. 33 percent. C. 50 percent. D. 70 percent.
Economics
Refer to the above figure. Suppose the economy had been at point A and now is at B. What could have caused the movement to B?
A. Both the labor force and the population increased. B. Winter storms cause factories in the north to be shut down for several weeks. C. Unusually good weather causes the wheat crop to be larger than normal. D. Government spending increased causing aggregate demand to increase.
Economics