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Explain How the Free-Market Mechanism Adjusts Prices So That Resource

question 21

Essay

Explain how the free-market mechanism adjusts prices so that resource allocation is economically efficient.


Definitions:

Ergs

In psychology, often considered an outdated term for the basic drives or instincts that motivate human behavior, such as hunger, thirst, and sex.

Source Traits

Fundamental personality attributes identified by Raymond Cattell that underlie and give rise to surface behaviors.

Ergs

A unit of energy in the centimeter-gram-second (CGS) system, used to measure the amount of work or energy.

Proprium

Encompasses all aspects of an individual's self or identity as defined by psychologist Gordon Allport.

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