Which of the Following Statements Is NOT True About the Price

question 52

Multiple Choice

Which of the following statements is NOT true about the price system?

• A) The price system allows resources to flow from low-valued uses to high-valued uses.
• B) The price system encourages the production of public goods.
• C) Individuals have freedom to purchase what they want.
• D) The price system allows for economic efficiency.

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Definitions:

Excitation-Transfer Model

A theory suggesting that the arousal generated by one event can be transferred and can intensify emotions in response to a subsequent event.

Discourse Analysis

An analytical method that examines patterns of language use across texts and spoken words to understand social, cultural, and psychological phenomena.

Evolutionary Theory

A theory proposing that the diversity of all life arises and develops through the processes of natural selection, mutation, gene flow, and genetic drift.

Frustration-Aggression Model

A psychological theory suggesting that frustration, or the blocking of goal achievement, leads to aggression or hostility.