Under Competitive Conditions, Market Prices

question 144

Multiple Choice

Under competitive conditions, market prices

• A) generally convey little information about the value and cost of goods.
• B) do not usually have much of an effect on the decisions of individuals.
• C) are incapable of coordinating the actions of buyers and sellers.
• D) generally bring the self-interest of individuals into harmony with the general welfare.

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Definitions:

Percentage

A portion or share expressed as a fraction of 100, commonly used to compare differences in quantities.

Percentage

A rate, number, or amount in each hundred, represented by the symbol %.

Base

The fundamental component or main ingredient in a mixture, formula, or system.

Decimal Places

The number of digits to the right of the decimal point in a number, significant in precision of measurements and calculations.