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:

Cardiac Problems

Health issues related to the heart, which can range in severity from minor to life-threatening conditions, including heart disease, arrhythmias, and heart attacks.

Emotional Distress

A state of emotional suffering often characterized by feelings of anxiety, depression, or stress.

Addiction

A compulsive, chronic, physiological or psychological need for a substance, activity, or habit that is harmful to the individual.

Dependence

A state of needing something or someone for support, survival, or to function properly.