The Price Rationing Mechanism of a Freely Functioning Market Leads

question 385

Multiple Choice

The price rationing mechanism of a freely functioning market leads to the most efficient use of resources because

• A)all gains from mutually beneficial trade are captured.
• B)the Federal Trade Commission regulates the market.
• C)of the rise of the legislative apparatus that supports trade.
• D)the Justice Department monitors market activities.

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Definitions:

Exemption

A deduction allowed by law to reduce the amount of income that would otherwise be taxed. These are often provided for the taxpayer, their spouse, and dependents.

Full-Time Student

An individual enrolled in a higher education institution for the number of hours or courses the school considers to be full-time attendance.

Working as a Clerk

Employment involving performance of administrative duties, such as filing, keeping records, or assisting customers.

Qualifying Relative

A tax term that refers to a relative or even a non-relative who meets certain IRS criteria, allowing the taxpayer to claim them as a dependent for tax purposes.