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Which of the Following Is an Important Function of Prices

Question 2

Multiple Choice

Which of the following is an important function of prices in a competitive market economy?


A) Ensuring an equal distribution of goods and services.
B) Ensuring that resources are used in the most efficient manner.
C) Ensuring that all industries will be perfectly competitive in the long run.
D) Equating the marginal utilities of all goods consumed.
E) Equating level of purchases with level of needs.

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