There is no shortage of scarce resources in a market economy because
a. the government makes shortages illegal.
b. resources are abundant in market economies.
c. prices adjust to eliminate shortages.
d. quantity supplied is always greater than quantity demanded in market economies.
c
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Which of the following legal subjects is most concerned with the economic function of the legal system?
A) criminal law B) public goods C) antitrust legislation D) civil rights
The CPI was 120 in 2000 and 132 in 2001. Dorgan borrowed money in 2000 and repaid the loan in 2001. If the nominal interest rate on the loan was 12 percent, then the real interest rate was
a. 2 percent. b. 10 percent. c. 12 percent. d. 22 percent.
Suppose the money multiplier in the United States is 4. If the Fed wants to expand the money supply by 600 it should:
A. buy government securities worth 150. B. sell government securities worth 150. C. sell government securities worth 600. D. buy government securities worth 600.
According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in
A. a shortage of 30 million gallons. B. an increase in quantity demanded of 10 million gallons. C. an increase in demand of 20 million gallons. D. an increase in quantity supplied of 20 million gallons.