The Incentive Function of Prices

question 46

Multiple Choice

The incentive function of prices

• A) indicates that price increases bring forth more of that resource.
• B) is the idea that competitive markets will always clear.
• C) applies to all resources.
• D) only applies to land.

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Definitions:

Communication Network

Set of rules governing the possibility or ease of communication between different roles in a group.

Task Allocation

The assignment of tasks or duties to different people or groups in an organization or project, often based on skills, availability, or workload balancing.

Division of Labour

The assignment of different parts of a manufacturing process or task to different individuals in order to improve efficiency and productivity.

Social Roles

The parts individuals play as members of a social group, which dictate their behavior, responsibilities, and expectations.