As rationing mechanisms, prices
a. and long lines are efficient.
b. are efficient, but long lines are inefficient.
c. are inefficient, but long lines are efficient.
d. and long lines are inefficient.
b
You might also like to view...
The slope of an isoquant measures
A) the ratio of the marginal utility of the two inputs. B) the price ratio of the two inputs. C) the rate at which inputs can be substituted for each other keeping total output constant. D) the average product of labor.
In the Keynesian model, a decline in interest rates will cause investment to
A) increase. B) decline. C) remain unchanged. D) move erratically, depending on the interest rate effect on saving.
If the price of potato chips increases, other things constant, demand for potato-chip dip will:
a. not change; only quantity demanded will change. b. increase, because the goods are substitutes. c. decrease, because the goods are substitutes. d. decrease, because the goods are complements. e. increase, because the goods are complements.
Developing countries can be expected to have a comparative advantage in industries requiring a relatively large amount of skilled labor
a. True b. False Indicate whether the statement is true or false