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When Price Signals Reflect _______ Benefits and _______ Costs of Choices

question 186

Multiple Choice

When price signals reflect _______ benefits and _______ costs of choices, we expect that the allocation of resources will be _______ .


Definitions:

Present Value

The value at present of future cash earnings or accumulations of money, determined by applying a pre-specified rate of financial return.

Current Liability

A company's debts or obligations that are due within one year.

Goods

Physical items that are produced, bought, or sold by businesses in the course of their operations.

Services

Intangible products offered to consumers, such as repairs, entertainment, and advice, that provide value without producing a physical product.

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