Market prices provide information to consumers, helping them coordinate their activities so long as
a. competition is present and buyers and sellers are free to choose mutually agreeable prices.
b. prices are not allowed to rise too high, causing a shortage.
c. prices are legally kept equal in all markets, preventing unfair price increases in markets with shortages and unfair price decreases when a market surplus is present.
d. the government carefully screens producers and effectively keeps inefficient producers out of the market.
A
You might also like to view...
Game theory is the study of ________
A) policy analysis B) strategic interactions C) program evaluation D) irrational decision making
Which of the following is a true statement about U.S. job gains and losses under free trade agreements?
A) Whether jobs have been gained or lost, the size of these gains or losses is small relative to total U.S. job creation. B) Free trade agreements have resulted in a significant loss of jobs in the U.S. C) Free trade agreements have resulted in a significant gain in jobs in the U.S. D) Free trade agreements have resulted in no change in jobs in the U.S.