The Price System Determines the Level and Composition of Output

question 33

Multiple Choice

The price system determines the level and composition of output because it relies on firms' acting in accord with

• A) altruistic concerns.
• B) government mandates.
• C) the profit motive.
• D) the market supply curve.
• E) the predictions of economists.

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Definitions:

Verbal Memories

The aspect of memory that deals with the recall and recognition of words and language.

Hippocampus

A region of the brain associated with memory formation, learning, and emotions.

Infantile Amnesia

Inability to recall events that occur prior to the age of three or so; also termed childhood amnesia.