The rationing function of price
A) occurs when there is a movement of resources into or out of markets as a result of changes in the equilibrium market price.
B) is also known as the guiding function of price.
C) occurs when consumers change their tastes and preferences.
D) occurs only when the market experiences severe shortages.
C
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Pursuing comparative advantage means
A) adding up the plusses and minuses after a transaction. B) doing it to the other person first. C) making equal, fair exchanges for equally valued goods or services. D) sacrificing something less valuable for the sake of something more valuable. E) seeking relative status rather than absolute welfare.
Most economists - both liberals and conservatives - believe a balanced budget amendment is an ill-conceived idea.
A. True B. False C. Uncertain
The marginal revenue product (MRP) of labor is the
a. total revenue generated when one more worker is hired b. change in average revenue when one more worker is hired c. total revenue per worker when one more worker is hired d. change in total revenue when one more worker is hired e. change in employment when total revenue changes by one dollar
Property that is owned by everyone and therefore by no one in particular is referred to as
A. free property. B. social property. C. private property. D. common property.