The Market Solves the Information Problem When Allocating Resources By

question 130

Multiple Choice

The market solves the information problem when allocating resources by:

• A) collapsing all the relevant information about uses of the good into its price.
• B) collapsing all the relevant information about inputs of the good into the level of output.
• C) aggregating all the relevant information about the output of the good into the supply curve.
• D) aggregating all the relevant information about the output of the good into the demand curve.

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Definitions:

Sigmund Freud

Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Successful Resolution

Refers to the effective resolution of problems or conflicts, resulting in a satisfactory outcome for all parties involved.

Oedipus

In psychoanalytic theory, a complex of emotions aroused in a young child, typically around the age of 4, by an unconscious sexual desire for the parent of the opposite sex and a wish to exclude the parent of the same sex.

Electra Complex

In Freudian psychoanalytic theory, a girl's psychosexual competition with her mother for possession of her father.