Each of the following is an example of the price mechanism at work, except when
A. wage and price controls were used during World War II to control inflation.
B. consumers curtailed driving their cars when the price of gasoline increased dramatically in 2005.
C. American farmers during World War I expanded production on previously unused land in response to higher crop prices.
D. factories of gas-guzzling automobiles shut down when the price of gasoline triples in less than three months.
A. wage and price controls were used during World War II to control inflation.
You might also like to view...
Which of the following is NOT part of the current account?
A) Dividends received on a foreign investment B) Purchase of a plane ticket on a foreign airline C) Shipment of food aid to a poor country D) Purchase of a foreign bond E) All of the above.
Suppose your donut shop earns $20,000 in total revenues per month with explicit costs of $15,000 and opportunity costs of $5,000. Your economic profit is
A) $16,000. B) $12,000. C) $5,000. D) zero.
Which of the following will have no impact on the demand for ice cream in the short run?
a. A change in population size b. A change in the price of ice cream c. A change in seasons d. A change in consumer preferences e. A change in consumer incomes
In going from the simple to the flexible accelerator, j is set at ________, and v* is ________
A) one, allowed to vary B) one, set at less than one C) less than one, set at less than one D) less than one, set at one E) less than one, allowed to vary