The Guiding Function of Price Is

question 48

Multiple Choice

The guiding function of price is

• A)the movement of price to clear the market of any shortages or surpluses.
• B)the use of price as a signal to guide government on the use of market subsidies.
• C)a long-run function resulting in the movement of resources into or out of markets.
• D)the movement of price as a result of changes in the demand for a product.

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Definitions:

Future Value

The value of an investment at a specified date in the future, considering interest or returns earned over time.

Present Values

A calculation that determines the present worth of a future sum of money or stream of cash flows, given a specified rate of return.

Technical Analysis

A method of evaluating securities by analyzing statistics generated by market activity, such as past prices and volume.

Statistical Analysis

A method of collecting, reviewing, and interpreting data to discover patterns, correlations, or trends.