Prices Communicate Information About Relative Availability of Products

question 141

Multiple Choice

Prices communicate information about relative availability of products. For example, a decrease in the price of corn signals to consumers and producers that:

• A)​consumers are buying more corn than before.
• B)​corn is relatively more abundant than before.
• C)​corn is relatively less abundant than before.
• D)​consumers are stocking up on corn because of the predictions of a cold winter.

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Definitions:

Ethnocentrism

The belief in the inherent superiority of one's own ethnic group or culture.

Pluralism

A condition or system in which two or more states, groups, principles, sources of authority, etc., coexist.

Average Age

The mean age of a particular group of individuals or entities, calculated by dividing the sum of their ages by the number of individuals.

Cost Argument

A principle suggesting that maintaining certain practices, such as equal employment opportunities, can reduce costs associated with turnover, absenteeism, and training by utilizing a larger, more diverse workforce.