The price rationing mechanism of a freely functioning market leads to the most efficient use of resources because
A. all gains from mutually beneficial trade are captured.
B. the government regulates the market.
C. the Supreme Court determines market activities.
D. of the rise of the legislative apparatus that supports trade.
Answer: A
You might also like to view...
The effect of trade on specialized employees of exporting industries will be ________ jobs and ________ pay because they are relatively ________
A) more; higher; immobile B) fewer; lower; immobile C) fewer; lower; mobile D) more; lower; immobile E) more; higher; mobile
The basic problem with the existence of dead capital is that
A. since there is no cost to dead capital, there is an incentive to overinvest. B. dead capital cannot be put to any use since there is no ownership. C. with no clear ownership, dead capital often cannot be transferred to its most efficient use. D. dead capital creates government inefficiency, bureaucracy, and excessive regulation.
More flexible labor markets will shift
a. both the long-run Phillips curve and the long-run aggregate supply curve to the right. b. both the long-run Phillips curve and the long-run aggregate supply curve to the left. c. the long-run Phillips curve to the right and the long-run aggregate supply curve to the left. d. the long-run Phillips curve to the left and the long-run aggregate supply curve to the right.
The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below. The equilibrium price and quantity when only private costs are taken into account are
A. Price = $55, Quantity = 30 B. Price = $40, Quantity = 55 C. Price = $30, Quantity = 20 D. Price = $30, Quantity = 80