The Market Solves the Incentive Problem When Allocating Resources Because

question 185

Multiple Choice

The market solves the incentive problem when allocating resources because the:

• A) consumers will pay for the good only if its price is greater than the value of use.
• B) consumers will pay for the good only if its value of use is greater than the price.
• C) suppliers will produce the good only if its cost is less than the value of use.
• D) suppliers will produce the good only if its value of use is less than the cost.

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Definitions:

Podocyte Processes

Extensions of podocytes, cells in the kidney that wrap around capillaries of the glomerulus, playing a key role in the filtration of blood.

Juxtaglomerular Apparatus

A specialized structure in the kidney that regulates blood pressure and the filtration rate of the glomerulus.

Afferent Arteriole

The small artery that carries blood toward the nephrons in the kidney.

Juxtaglomerular Apparatus

The juxtaglomerular apparatus is a specialized structure in the kidney that plays a key role in regulating blood pressure and filtrate formation by managing the release of renin.