"Rationing" scarce goods by a rule that encourages our willingness to pay the monetary price
What will be an ideal response?
encourages individuals to economize as their specific situation suggests.
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In the efficiency wage model with the efficiency wage above the market-clearing wage, when employment is at its full-employment level
A) labor supply equals labor demand. B) there is an excess supply of labor. C) there is an excess demand for labor. D) there could be either an excess demand for, or an excess supply of, labor.
The Cold War has been over since 1991, and foreign aid:
A. has tapered off and is largely nonexistent now. B. is still used as an effective political strategy to prevent communism. C. continues and is still largely dedicated toward building public goods. D. proved to be an ineffective tool in preventing the spread of communism.
Money's basic advantage as compared to barter is that
A) everybody has money but not everyone has the opportunity to barter. B) a money system relies on a double coincidence of wants. C) money reduces transaction costs. D) money is the only medium you can use to store your wealth.
Countries import some goods and export other goods primarily because of:
A) unemployment. B) self-sufficiency. C) comparative advantage. D) the law of increasing opportunity cost.