Prices ration goods to
A) the people who most deserve it.
B) the people with the lowest opportunity cost of time.
C) the people willing and able to pay the highest price.
D) the richest people.
C
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When the Fed conducts an open market purchase, the first round changes in the money creation process are that excess reserves ________, bank deposits ________, and the quantity of money ________
A) decrease; increase; does not change B) do not change; increase; increases C) increase; increase; increases D) increase; do not change; increases E) decrease; decrease; decreases
According to John Rawls, a "veil of ignorance" was needed for equitable decisions about appropriate social rules and individual endowments, so no one would know their place in society
Indicate whether the statement is true or false
Suppose buyers in the used car market are willing to pay $3,500 for a plum (high-quality) used car and $1,500 for a lemon (low-quality) used car. If buyers believe that 30% of the used cars on the market are lemons (low quality), what would they be willing to pay for a used car?
A. $2,000 B. $2,500 C. $2,900 D. $3,500
A perfectly competitive industry achieves allocative efficiency when
A) goods and services are produced at the lowest possible cost. B) goods and services are produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it. C) it produces where market price equals marginal production cost. D) firms carry production surpluses.