The "double coincidence of wants" problem is
A) resolved under a system of barter.
B) always present in all economic systems.
C) resolved by the use of money.
D) created by the use of money.
C
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Explain why a minimum wage creates an inefficient allocation of labor resources
What will be an ideal response?
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optimal price. Since then, entry has occurred that make customers more price conscious. When it rehired the economics consulting firm to estimate the demand elasticity, it found that demand had become more elastic at -4 . Also, it eked out cost savings and now has a unit cost of $300 . What price should ShorTech charge now?
One reason for international specialization in production is
a. a high tariff imposed by a national government b. a low tariff imposed by a national government c. diminishing returns to a variable factor of production d. the different resource endowments throughout the world e. high fixed costs of production
When market failures occur
A. the invisible hand will correct for the market failures. B. buyers and sellers will correct the market failures. C. the price system will correct the market failures. D. the government can step in to correct the market failures.