In a Properly Functioning Free Market

question 98

Multiple Choice

In a properly functioning free market

• A)the price of any good reflects its marginal utility to consumers.
• B)price will equal marginal cost.
• C)the invisible hand will assure that society's resources are used efficiently.
• D)All of the above are correct.

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Definitions:

Public Utilities

Companies that provide essential services such as water, electricity, and gas to the public and are often regulated by the government.

State Lotteries

Government-run gambling operations where participants buy tickets for a chance to win cash prizes, often used to raise funds for public services.

Federal Tax Revenue

The income received by the federal government from taxes imposed on individuals, businesses, and other entities, used to fund government operations and public services.

Personal Income

The total annual income received by an individual, including wages, dividends, interest, and government transfers.