As a Method of Resource Allocation, Market Price

question 408

Multiple Choice

As a method of resource allocation, market price

• A) means those who are willing and able to pay get a particular good or service.
• B) works well when self-interest must be suppressed.
• C) works best inside firms and government departments.
• D) is efficient when there is no effective way to distinguish among potential users of a scarce resource.

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Definitions:

Antecedent

The “if” component in a hypothetical proposition.

Hypothetical Proposition

An assumption or proposition made for the sake of argument that explores consequences of its being true, regardless of its actual truth value.

Antecedent

In logic and grammar, it refers to the conditional clause or phrase to which a pronoun refers back; in logic, also the first part of a conditional statement.

Consequent

The “then” component in a hypothetical proposition.