Asked by Victoria Ferguson on May 18, 2024
Verified
The incentive function of prices:
A) indicates that price increases bring forth more of that resource.
B) is the idea that competitive markets will always clear.
C) applies to all resources.
D) only applies to land.
Incentive Function
The way in which economic rewards or penalties influence the actions of individuals and firms.
Competitive Markets
Markets where multiple firms are in rivalry to attract consumers, characterized by free entry and exit, leading to efficient outcomes.
Price Increases
An upward adjustment in the cost of goods or services, typically reflecting higher production costs or increased demand.
- Comprehend the duties and workings of rent within an economic system.
Verified Answer
Learning Objectives
- Comprehend the duties and workings of rent within an economic system.
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