Prices in a market economy perform a rationing function because they reflect
A. the extent to which the goods are necessities.
B. the relative scarcity of the goods.
C. the strength of the supply curve.
D. the demand of all buyers in the market.
Answer: B
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Combinations to the left of the budget line are:
A. Unavailable and inefficient B. Unattainable and efficient C. Attainable and inefficient D. Attainable and efficient
In the figure above, what is the equilibrium price and quantity?
What will be an ideal response?
What is an advantage of operating a sole? proprietorship?
A. Demands on owner B. Fewer limitations on personal income C. Resource limitations D. Financial liability E. Limited managerial perspective
Suppose a medical study reveals new benefits to consuming beef and at the same time a bumper corn crop reduces the cost of feeding steers. The equilibrium quantity of beef will Question 7 options:
A. stay the same. B. perhaps increase, decrease, or stay the same, but more information is needed to determine which it does. C. definitely either stay the same or decrease. D.decrease. E. increase.