Prices serve the public interest by
A. making resource owners wealthy.
B. rationing scarce resources.
C. keeping poor people from purchasing more than they can afford.
D. forcing the government to participate in the market.
Answer: B
You might also like to view...
Cartels are likely to be better able to prevent their members from cheating on an agreement: the greater the number of members in the cartel.
a. the fewer the number of members in the cartel b. the greater the number of members in the cartel. c. the greater are the differences in production costs across member firms. d. the greater are the differences in demand projections across member firms.
AZT is a drug that inhibits the reproduction of the AIDS virus, thus preventing the full development of the disease. The drug, which is sold in an unregulated market, is very expensive, and many AIDS patients who cannot afford it die from the disease. This case provides ammunition to critics of the market system on the basis of its
A. fairness. B. externalities. C. cost disease in services. D. inefficiency.
Rent-seeking activities:
A. have no effect on society's welfare. B. require resources, and the net result is to reduce total welfare to society. C. require resources, but the net result is to increase total welfare to society. D. do not require resources.
A public utility, such as a water company, is an example of a
a. technological monopoly b. geographic monopoly c. natural monopoly d. government monopoly