With Imperfect Information, Prices

question 131

Multiple Choice

With imperfect information, prices

• A) are irrelevant in the marketplace.
• B) are always above equilibrium.
• C) may no longer reflect individual preferences.
• D) are the only mechanism to judge efficiency.

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Definitions:

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A cultural attitude that favors or promotes the interests of business and economic growth.

Federal Trade Commission

A U.S. federal agency established in 1914 to enforce antitrust laws and promote consumer protection.

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