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What three functions does the price mechanism perform in allocating resources?
A
- Allocating unlimited goods
- Ignoring consumer preferences
- Restricting economic decisions
B
- Rationing consumer incomes
- Signalling producer costs
- Reducing economic decisions
C
- Producing scarce goods
- Measuring consumer incomes
- Controlling economic decisions
D
- Rationing scarce goods
- Signalling consumer preferences
- Incentivising economic decisions
Card 1 of 28
2.4.4 functions of price in resource allocation; rationing, signalling (transmission of preferences) and incentivising Flashcards
28 flashcards on CIE Intl A Level Economics 2.4.4 functions of price in resource allocation; rationing, signalling (transmission of preferences) and incentivising: the key terms and definitions you need to recall.