Which statement is correct?
A. The operation of a market system has little, if any, effect on the distribution of income in the economy.
B. In a market system, buyers and sellers must be in face-to-face contact with each other.
C. Prices affect the distribution of goods in a market system but not the allocation of resources.
D. In a market system, prices serve to ration goods and services to consumers.
Answer: D
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If income in the United States rises relative to income in Japan, the yen should appreciate against the dollar, ceteris paribus.
Answer the following statement true (T) or false (F)
Exhibit 1A-7 Straight line relationship
Using the relationship shown in Exhibit 1A-7, suppose the price of air travel increases. How would you revise the graph to show this change?
A. Draw a new point on the graph upward and to the left. B. Draw a new point on the graph downward and to the right. C. Draw a new line on the graph. D. Change the current line so that its slope is flatter.
What was the largest U.S. fishery, in dollar terms, in 2010?
A. Pacific halibut. B. Lobster. C. Walleye pollock. D. Sea scallop.
A monopolistically competitive firm that is incurring a loss will shut down if
A. price is less than marginal cost. B. price is less than average total cost. C. revenues are less than variable costs. D. marginal revenue is less than marginal cost.