The Most Fundamental Function of Prices in a Market Economy

question 45

Multiple Choice

The most fundamental function of prices in a market economy is to provide

• A)The data necessary to calculate rates of inflation.
• B)The basis for the calculation of sales tax.
• C)Information about the relative scarcities of resources and goods and services.
• D)Maximum profits to producers.

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Definitions:

Reported Decision

A judicial decision that has been published in a series of law reports, making it accessible for reference.

Analysis

The process of breaking down complex data or situations into simpler parts to understand them better.

Decision

A conclusion or resolution reached after consideration, often rendered by a court or judicial body.

Appellate Opinions

Judicial decisions or written explanations by appellate courts regarding the resolution of appeals.