Which of the Following Is a Function Performed by Market

question 342

Multiple Choice

Which of the following is a function performed by market prices?

• A) Market prices communicate information to buyers and sellers.
• B) Market prices coordinate the decisions of buyers and sellers.
• C) Market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production.
• D) All of the above are functions performed by market prices.

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Definitions:

Budget Deficit

The situation where a government's expenditures exceed its revenues over a specific period, leading to borrowing or debt accumulation.

National Defense

Public or governmental efforts to protect a country and maintain national security through armed forces and defense strategies.

Federal Spending

Expenditures by the federal government on programs, services, and operations, including everything from military funding to social security benefits.

Income in Taxes

refers to the portion of individuals' or businesses' earnings that is paid to the government as tax.