How Does a Market System Prevent People from Getting as Many

question 196

Multiple Choice

How does a market system prevent people from getting as many goods and services as they wish?

• A)Governments interfere with the market mechanism to influence the allocation of goods and services.
• B)In a market system,firms can charge any price they want,thus preventing poor people from getting as many goods and services as they wish.
• C)The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor.
• D)The government imposes taxes on those who earn beyond a certain amount of income.

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Definitions:

Significance Level

The probability of inappropriately disapproving the null hypothesis in a study of statistics, generally labelled as alpha.

Linearly Related

Shows a direct correlation between two variables in which the rate of increase or decrease in one variable is consistent with the rate in the other variable.

Indicator Variables

Indicator variables, also known as dummy variables, are used in statistical models to represent categorical data by assigning a binary value (usually 0 or 1) to each category.

Indicator Variables

Variables in statistical modeling, often binary, used to represent the presence or absence of a characteristic.