Which Would NOT Be a Role That Prices Play in a Market

question 36

Multiple Choice

Which would NOT be a role that prices play in a market economy?

• A) Prices guide economic decisions and thereby allocate scarce resources.
• B) Prices ensure that quantities supplied and demanded are in balance.
• C) Prices ensure an equal distribution of goods and services.
• D) Prices influence how much of a good buyers choose to purchase and how much sellers choose to produce.

Understand the concepts of simple interest and compound interest.

Differentiate between ordinary (360-day year) and exact interest (365-day year) calculations.

Apply mathematical skills to compute both ordinary and exact interest.

Master the skill of rounding numbers to the nearest cent in financial calculations.

---

Definitions:

Sales Commission

A sum paid to salespersons, often calculated as a fixed percentage of the sales they generate.

Product Cost Method

A method of accounting for costs that are directly associated with the production of goods, including direct materials, direct labor, and factory overhead.

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and overhead costs.

Sunk Cost

This is a cost that has already been incurred and cannot be recovered, which should not affect future business decisions.