In a Price System, Changes in Prices

question 88

Multiple Choice

In a price system, changes in prices

• A) make it difficult for the system to function well.
• B) imply that people have made mistakes in the past.
• C) signal to everyone in the system what goods are relatively more or less scarce.
• D) signal to policy makers what goods should and should not be taxed more.

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Definitions:

Constitution

The fundamental principles and established precedents according to which a state or other organization is governed.

Rehabilitation Act

U.S. legislation that prohibits discrimination on the basis of disability in programs conducted by Federal agencies or receiving federal financial assistance.

Discrimination

Unfair or prejudicial treatment of individuals or groups based on characteristics such as race, gender, age, or sexual orientation.

Handicapped

Refers to individuals with physical or mental impairments that substantially limit one or more major life activities.