Which of the Following Is Not a Function of Prices

question 82

Multiple Choice

Which of the following is not a function of prices in a market system?

• A)Prices have the crucial job of balancing supply and demand.
• B)Prices send signals to buyers and sellers to help them make rational economic decisions.
• C)Prices coordinate economic activity.
• D)Prices ensure an equal distribution of goods and services among consumers.

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Definitions:

Nonrenewable

Resources or energy sources that cannot be replaced or replenished once they are consumed, such as fossil fuels.

Implicit Interest Rate

Implicit interest rate is the interest rate implied in the terms of a lease or loan, calculated based on the initial amount and the future payments or receipts.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments.

Salvage Value

The estimated resale value of an asset at the end of its useful life, considered in depreciation calculations.