Why market pricing is valuable economic mechanism

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Reference no: EM131817652

1. Which of the following is not a reason why market pricing is a valuable economic mechanism?

It rations scarce products and services.

It provides valuable information to producers and consumers.

It assures an equitable distribution of scarce resources

It provides incentives to shift consumption away from scarce resources and toward those that are more plentiful.

2. Which of the following statements is true for a corporation with $1 million market value of equity, $2 million market value of assets, and 1,000 shares of outstanding stock?

Market value per share equals $2,000.

Book value per share equals $1,000.

Market value of liabilities exceeds book value of liabilities.

Market value of liabilities equals $1 million.

Reference no: EM131817652

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