In Situations in Which Prices Cannot Be Used to Signal

question 335

Multiple Choice

In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?

• A) queuing
• B) political power
• C) random assignment
• D) all of the above

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Definitions:

Resulting Trust

A trust that arises by implication of law when one person holds property for the benefit of another under certain circumstances, typically when the title holder is not intended to have beneficial ownership.

Contract

A legally binding agreement between two or more parties, outlining obligations and rights concerning particular terms or services.

Beneficiary

An individual or entity entitled to benefits or proceeds from a will, insurance policy, retirement account, or other contractual arrangement.

Terminate

To bring something to an end or conclusion, effectively stopping its continuation or existence.