In a Free Market,the Price System Determines How Society's Output

question 74

Multiple Choice

In a free market,the price system determines how society's output is distributed by

• A) ensuring that low income people can buy all the necessities for living.
• B) providing goods for those willing and able to pay at least the equilibrium price.
• C) determining each person's income in the labor market according to the tax rate imposed by the state.
• D) allowing all those who desire a commodity to buy it.
• E) ensuring that each commodity is produced by the most efficient technique.

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Definitions:

National Median

The middle value in a dataset sorted in ascending order, which divides the distribution into two equal parts, commonly used in describing income or wealth.

Household Income

The combined gross income of all members of a household, which is used to determine the household's economic status.

Liberal Theories

A set of ideas in political and economic thought emphasizing freedom, democracy, and the importance of individual rights.

Black Poverty

A term referring to the disproportionately high rates of poverty among Black or African American communities.