The Role That Prices Play in Distributing Scarce Goods and Services

question 23

Multiple Choice

The role that prices play in distributing scarce goods and services to those consumers who value them the most highly is known as the ________ function of price.

• A)allocative
• B)multiplicative
• C)equilibrium
• D)rationing

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Definitions:

Strict Product Liability

Refers to a legal doctrine that holds manufacturers, distributors, or sellers liable for distributing a defective product to a consumer.

Requirements

Conditions or capacities needed by a system or product to solve a problem or achieve an objective.

Plaintiff

The party who initiates a lawsuit by filing a complaint with the court, alleging harm or wrongdoing by the defendant and seeking legal relief.

Superseding Cause

An intervening cause that alters the natural sequence of events and relieves the original party from liability in a legal context.