The Price System Functions Most Effectively When

question 34

Multiple Choice

The price system functions most effectively when

• A) supply equals demand.
• B) there is no divergence between private costs and social costs.
• C) prices equal output.
• D) external diseconomies equal external economies.
• E) there is a complete absence of direct regulation.

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Definitions:

High Quality

Pertains to products, services, or processes that meet or exceed established standards of excellence.

Exchanges

Interactions or transactions between parties, involving the giving and receiving of goods, services, or ideas.

Stranger Phase

A stage in the development of interpersonal relationships where individuals do not yet know each other and are beginning to interact for the first time.

Scripted

Following a pre-defined set of instructions or a detailed plan, often with little room for deviation or improvisation.