A system of allocating scarce goods and services using some criteria other than price:
a. rationing
b. price floor
c. excess demand
d. surplus
e. equilibrium
Ans: a. rationing
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Which of the following is a normative question?
A) How often do banks fail? B) What is the value of a human life? C) How much does government spending stimulate aggregate output? D) How do we calculate the total value of activity in an economy?
If the price level rises by 2 percent and workers' money wages increase by 2 percent, then the
A) quantity of labor supply decreases. B) quantity of labor supply increases. C) quantity of labor supplied does not change because there is no change in the real wage rate. D) More information about the dollar change in the price level and money wage rate are needed to answer the question.
Bianca consumes pizza. Marginal utility theory predicts that when the price of pizza increases
A) Bianca's total utility from pizza will increase. B) Bianca will buy less pizza. C) Bianca's marginal utility from pizza will increase. D) Bianca's demand curve for pizza will shift leftward.
Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
A) the price and marginal private benefit B) the economically efficient output C) the price and the marginal social benefit D) the size of the deadweight loss