Which of the Following Is an Important Function of Prices

question 39

Multiple Choice

Which of the following is an important function of prices in a competitive market economy?

• A)Ensuring an equal distribution of goods and services.
• B)Ensuring that resources are used in the most efficient manner.
• C)Ensuring that all industries will be perfectly competitive in the long run.
• D)Equating the marginal utilities of all goods consumed.
• E)Equating level of purchases with level of needs.

Recognize the impact of stereotypes and biases on social cognition and behavior.

Examine the relationship between language development and cognitive categorization.

Understand the fundamental concepts of present and future value calculations, including how interest rates affect these values.

Identify and differentiate between various types of annuities and their valuation.

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Definitions:

Classical Conditioning

An education method where two stimuli are steadily associated; the reaction initially comes from the second stimulus but is later directly elicited by the first stimulus alone.

Vicarious Punishment

A process by which an individual observes another being punished and thus learns to refrain from the punished behavior.

Drug Tolerance

The phenomenon whereby increasing doses of a drug are required over time to achieve the same effect, often associated with addiction and dependence.

Behavior Modification

Behavior modification is the use of empirically demonstrated behavior change techniques to improve behaviors, often involving reinforcing desired behaviors and decreasing undesired ones.