In a Price System, Changes in Prices

question 88

Multiple Choice

In a price system, changes in prices

• A) make it difficult for the system to function well.
• B) imply that people have made mistakes in the past.
• C) signal to everyone in the system what goods are relatively more or less scarce.
• D) signal to policy makers what goods should and should not be taxed more.

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Definitions:

Synthesize

The chemical process of combining two or more entities to form a new compound.

Cyclohexene

A cyclic hydrocarbon with the formula C6H10, characterized by a single carbon-carbon double bond within a six-membered ring.

Crossed-aldol Product

A compound formed from the condensation reaction between two different aldehydes or ketones under basic or acidic conditions, leading to a β-hydroxyaldehyde or β-hydroxyketone.

Benzaldehyde

An organic compound consisting of a benzene ring with an aldehyde functional group; used as a precursor in the synthesis of various chemicals.