Which of the following is NOT an example of the allocating function of markets?
A)When the price of tomatoes rises, Jose buys fewer tomatoes.
B)Sunil gets a job to save for a car.
C)Nina knits a sweater and gives it to her niece.
D)Penina buys gas at the station with the lowest price.

Question

Quizplus · Accepted Answer

The allocating function of markets refers to how markets distribute goods and services to those who are willing and able to pay for them. Options A, B, and D are all examples of this function - consumers respond to changes in prices or income by adjusting their consumption or saving behavior, and buyers seek out the best deal for a particular product. Option C, on the other hand, does not involve the use of prices or the marketplace - Nina simply gifts the sweater to her niece without any exchange of money or negotiation over value.

Which of the Following Is NOT an Example of the Allocating