There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
A. the prices of goods were artificially held down by price controls.
B. black markets were legal during the war.
C. goods were not subject to price controls.
D. gasoline rationing greatly restricted civilians from driving to stores.
Answer: A
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In the figure above, a price of $35 per dozen roses results in
A) a surplus. B) upward pressure on the price of roses. C) equilibrium. D) a shortage. E) an eventual rightward shift of the demand curve and/or leftward shift of the supply curve.
In the Keynesian model, suppose the Fed sets a target for the real interest rate
If the IS curve shifts down and to the left, and the Fed wants to keep output unchanged in the short run and the price level unchanged in the long run, what should the Fed do? Use the LR curve to formulate your answer.
Suppose Enid could increase her total utility by purchasing one more book and one less video rental. Which of the following is true?
a. The marginal utility of video rentals exceeds the marginal utility of books. b. The marginal utility of books exceeds the marginal utility of video rentals. c. The marginal utility of video rentals is negative. d. The marginal utility per dollar spent on books exceeds that of video rentals. e. Total utility is at a maximum.
Barriers to entry into a market could include all of the following, except one. Which is the exception?
a. government restrictions b. brand loyalty c. large marginal costs d. licensing fees e. large fixed costs