When a Market Price Allocates a Scarce Resource

question 56

Multiple Choice

When a market price allocates a scarce resource,

• A)everyone in the economy can use the resource.
• B)only those who show interest can use the resource.
• C)willingness-to-pay is not an issue.
• D)ability to pay for the resource is less important than willingness-to-pay.
• E)only those who are willing and able to pay get the resource.

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Definitions:

Indorser

An entity or person who signs the back of a negotiable instrument, such as a check or promissory note, thereby transferring ownership or guaranteeing payment to another party.

Instrument

A tool or device used for a specific purpose, often referring to musical instruments or legal documents.

Maker

Typically refers to the individual or entity that creates or executes a financial instrument, like a check or promissory note, thereby committing to the terms outlined therein.

Overdue

When an instrument is not paid when due or at maturity.