Which of the Following Is Not a Function of Prices

question 101

Multiple Choice

Which of the following is not a function of prices in a market system?

• A) Prices have the crucial job of balancing supply and demand.
• B) Prices send signals to buyers and sellers to help them make rational economic decisions.
• C) Prices coordinate economic activity.
• D) Prices ensure an equitable distribution of goods and services among consumers.

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Definitions:

Legal Agent

A person authorized to act on behalf of another person or entity in legal or financial matters.

Payment

The transfer of money or goods from one party to another as compensation for receiving goods, services, or to fulfill a legal obligation.

Acceptance of Goods

The act of receiving a product or service and agreeing that it meets the contractual specifications and requirements.

Environmentally Preferable Purchasing (EPP) Program

A procurement policy that emphasizes buying products and services with a reduced environmental impact.