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Economists Use the Term "Price System" to Refer to an Economic

question 28

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Economists use the term "price system" to refer to an economic system in which the government sets prices.


Definitions:

Price

The sum of money anticipated, needed, or handed over in exchange for something.

Consumer Surplus I

The gap between what consumers are prepared and able to spend on a product or service and what they end up paying.

Price

The amount of money required to purchase a good or service.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than other producers.

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