Higher Prices May Serve the Public Interest When

question 105

Multiple Choice

Higher prices may serve the public interest when:

• A)​there is a shortage of goods or services available 
• B)​there is an uneven distribution of traffic on alternate routes 
• C)​higher prices never serve the public interest 
• D)​both a and b

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Definitions:

Balance of Payments

A record of all economic transactions between the residents of a country and the rest of the world within a specific period.

Goods Deficit

A situation where a country's imports of physical goods exceed its exports, leading to a negative balance in trade for physical goods.

Exchange Rate

The value of one currency for the purpose of conversion to another, affecting international trade, investments, and economic relations between countries.

British Pounds

The currency of the United Kingdom, symbolized by £, and one of the major currencies traded worldwide.