Discrimination is an example of a rationing mechanism that may naturally develop in response to a binding price floor
a. True
b. False
Indicate whether the statement is true or false
True
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The total amount of consumption of a society can be increased if
A. firms allow each worker to perform multiple tasks. B. resources are allocated by a central planning group. C. individuals engage in specialization and voluntary trade. D. barter exchange is used in place of money.
A needy family consisting of a mother and three children currently receives cash benefits that average $12 per day. The mother of this family is allowed to earn an average of $4 per day before her benefits begin to decline. After that, for each dollar earned, cash benefits decline by 67 cents for each dollar earned. Assume that she can find work at $4 per hour. How many hours will she have to work per day before her benefits are eliminated?
What will be an ideal response?
Refer to the information provided in Figure 23.6 below to answer the question(s) that follow.
Figure 23.6Refer to Figure 23.6. Aggregate consumption is 960 when aggregate income is
A. $800. B. $950. C. $1,000. D. $1,125.
The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A