The Signals in Markets Are Determined

question 264

Multiple Choice

The signals in markets are determined

• A) by supply and demand.
• B) for all goods by the government through the use of price controls.
• C) in an unfair manner that ends up hurting the poor.
• D) by nonprice rationing devices.

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Definitions:

Labor Force

The sum of individuals in the workforce, comprising both those who are employed and those who are actively looking for work.

State and Local Levels

Refers to the governance and administrative structures that operate below the national level, including state, provincial, or regional governments and local municipalities.

General Sales Tax

A broad-based tax imposed on the sale of goods and services, typically collected by the retailer and passed on to the government.

Incidence

The measure of the distribution of tax or subsidy burden amongst individuals or groups in an economy.