1 Prices are an important tool because they Offer an informa

1. Prices are an important tool because they:

Offer an information generating, gathering and transmitting process.

Provide information that no single person or entity can know on his/her own.

C.Call up widely dispersed information into one measurable form.

All of the above.

2.All else being equal, as the price of a good rises:

A.Consumers purchase less of that good

B.Consumers purchase more of that good

C.All of the above

3.Government price controls do the following:

A.Cause resources to be allocated to their most efficient use

B.Eliminate the need for competition.

Cause surpluses and shortages

All of the above

Solution

1A

2B

3A