Which of the Following Are Important Clearing Functions Served by Price

question 10

Multiple Choice

Which of the following are important clearing functions served by price?

• A) Provides useful information to both consumers and producers regarding the relative value of a good or service in the market
• B) Serves as a rationing device, distributing goods and services to consumers who value them the most
• C) Acts as an incentive mechanism, encouraging more resources to markets with shortages through price increases and fewer resources to markets with surpluses through price decreases
• D) Allows both consumers and producers to achieve satisfaction from the consumption and production of marketable goods

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Definitions:

Stereotype Threat

The risk of conforming to stereotypes about one's social group, which can hinder performance and behavior.

Social Identity Threat

The experience of feeling at risk of confirming a negative stereotype about one's social group, which can negatively affect performance and wellbeing.

Self-affirmation

A psychological theory suggesting that individuals can maintain their sense of self-integrity by telling themselves (affirming) positive truths about themselves.

Stereotype Threat

The anxiety or concern experienced when one fears being judged or treated unfairly based on negative stereotypes about their group.