Rationing Through the Price System

question 56

Multiple Choice

Rationing through the price system

• A) leads to an inefficient use of available resources.
• B) leads to high prices.
• C) works only with government interference.
• D) leads to an efficient use of available resources.

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Definitions:

Reporting Issuer

A corporation that has issued securities to the public and is obligated to disclose periodic financial information to regulatory agencies and shareholders.

Outstanding Voting Rights

The rights to vote that are held by shareholders of a company, which have not been exercised yet.

Self-Regulating Organizations

Entities that operate independently to enforce rules and standards within a particular industry or profession without direct government oversight.

Securities Regulation

The set of laws and regulations governing how securities are issued, bought, sold, and traded, primarily aimed at protecting investors.