As a Method of Resource Allocation, Market Price

question 408

Multiple Choice

As a method of resource allocation, market price

• A) means those who are willing and able to pay get a particular good or service.
• B) works well when self-interest must be suppressed.
• C) works best inside firms and government departments.
• D) is efficient when there is no effective way to distinguish among potential users of a scarce resource.

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Definitions:

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The natural reflexes that control the process of expelling feces from the body.

Diuretic Effect

The increase in urine production by the kidneys, commonly induced by certain medications or substances, leading to reduced fluid retention in the body.

Eight-ounce Glasses

A common measurement used in the recommendation for daily water intake, suggesting the consumption of eight 8-ounce glasses of water a day for hydration.

Gas-producing Foods

Foods that increase gas in the digestive system, often leading to bloating and discomfort.