The Price System Has Information Advantages Over Nonmarket Systems Only

question 144

True/False

The price system has information advantages over nonmarket systems only when buyers and sellers can personally communicate their marginal benefits or marginal costs to each other.

Understand the concept of distributive justice and its relevance to employee perceptions.

Understand the concept and development of gender roles and stereotypes.

Recognize the influence of biological, psychosocial, and sociocultural factors on gender-related behaviors.

Identify and critique the major theories of gender development including Freud's gender identification theory, gender-schema theory, and social-cognitive theory.

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Definitions:

Entrepreneurial Ability

The human resource that combines the other economic resources of land, labor, and capital to produce new products or make innovations in the production of existing products; provided by entrepreneurs.

Economic Profit

The surplus remaining after subtracting total costs, including both explicit and implicit costs, from total revenues, indicating the profitability of a business beyond breaking even.

Self-Interest

Refers to actions that elicit personal benefit or advantage, often guiding economic decision-making and behavior in the context of rational choice theory.

Consumer Sovereignty

The determination by consumers of the types and quantities of goods and services that will be produced with the scarce resources of the economy; consumers’ direction of production through their dollar votes.