In a Price System, Changes in Prices

question 88

Multiple Choice

In a price system, changes in prices

• A) make it difficult for the system to function well.
• B) imply that people have made mistakes in the past.
• C) signal to everyone in the system what goods are relatively more or less scarce.
• D) signal to policy makers what goods should and should not be taxed more.

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Definitions:

Laboratory

A controlled setting designed for scientific experiments, research, or testing, equipped with specific tools and equipment.

Descriptive/Correlational Methods

Research strategies that involve observing, recording, and analyzing relationships between variables without imposing a change in the situation.

Empirical Observations

Data collected through direct and indirect observation as part of the scientific method.

Correlational Method

A non-experimental research method used to study the relationship between two variables without manipulating them.