Which of the Following Statements About Markets and Prices Is

question 12

Multiple Choice

Which of the following statements about markets and prices is correct?

• A) In a market system, buyers and sellers must be in face-to-face contact with each other.
• B) Prices affect the distribution of goods in a market system, but not the allocation of resources.
• C) In a market system, prices serve to ration goods and services to consumers.
• D) The operation of a market system has little, if any, effect on the distribution of income in the economy.

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Definitions:

Abstract

A brief summary of the main ideas of a piece of writing or research, often used to help readers decide whether to read the full document.

Denotative

Relating to the explicit or direct meaning of a word or expression, as opposed to its connotative or associated meanings.

Denotative

Pertaining to the literal or explicit meaning of a word, as opposed to its connotative or implied meaning.

Connotative

Pertaining to the implied or suggested meaning that is associated with a word beyond its literal definition.