The Market System Communicates Changes in Market Conditions and Elicits

question 149

Multiple Choice

The market system communicates changes in market conditions and elicits appropriate responses from businesses and resource suppliers through changes in prices. This is known as the

• A) guiding function of prices.
• B) monetary function of prices.
• C) circular flow of income.
• D) market determination of prices.

---

Definitions:

Myelin Sheath

A protective covering that surrounds axons of some neurons, which helps increase the speed at which nerve impulses travel.

Signals

In communication, signals are transmitted information or stimuli that convey messages between individuals or systems.

Myelin Sheath

A fatty layer that surrounds the axons of some neurons, providing insulation and improving the speed of electrical impulses.

Axons

Long, threadlike parts of nerve cells along which impulses are conducted from the cell body to other cells.