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:

Talkative

Describes a person who is inclined to speak a lot, often engaging in conversation or dialogue readily.

Blood Pressure

The force of blood pushing against the walls of blood vessels, which can indicate cardiovascular health.

Ecstasy

A state of intense joy and delight, often used to describe overwhelming feelings of happiness; also refers to MDMA, a psychoactive drug popular in nightclubs and dance parties.

Amphetamines

A class of stimulant drugs that increase central nervous system activity, often prescribed for attention deficit hyperactivity disorder (ADHD) and narcolepsy but also misused recreationally.