A Friend of Yours Asks You Why Market Prices Are

question 94

Multiple Choice

A friend of yours asks you why market prices are better than government-determined prices. What do you say?

• A) Because they generally reflect the value of a good to society, but not the cost of making it.
• B) Because they generally reflect the cost to society of making a good, but not its value.
• C) Because they generally reflect both the value of a good to society and the cost of making it.
• D) Because they generally reflect neither the value of a good to society nor the cost of making it.

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Definitions:

Linguistic Relativity Hypothesis

The theory that the structure of a language affects its speakers' world view or cognition.

Benjamin Whorf

An American linguist known for his hypothesis that the structure of a language affects its speakers' cognition and world view, often referred to as the Sapir-Whorf hypothesis.

Nativist Theory

The belief that certain skills or abilities are innate and hardwired in the brain at birth, emphasizing the role of genetics and inheritance in human development.

Language Acquisition Device

A hypothetical module of the human mind posited to account for children's innate predisposition for language learning.