Legal limits on prices will tend to cause misallocation of resources because
a. production (or opportunity) cost no longer corresponds to market price.
b. people are unable to determine their preferences at the high or low price.
c. producers no longer have incentive to be profitable.
d. consumers no longer have incentive to spend their income efficiently.
e. All of the above are correct.
a
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A ________ describes the possible moves in a game in sequence and lists the payoffs to each possible combination of moves.
A. decision tree B. payoff matrix C. multi-period game D. game graph
Many of the world's poorest nations have Gini coefficients lower than in the U.S
Indicate whether the statement is true or false
If a country has a higher opportunity cost to produce a good, that means that this country can never possess a comparative advantage in the production of any good
a. True b. False Indicate whether the statement is true or false
The data points on a supply curve come from
A. the same place from which we get the data points on a demand curve. B. the supply schedule. C. companies' annual reports. D. survey analysis.