The role that prices play in directing resources away from overcrowded markets and towards markets that are underserved is known as the ________ function of price.
A. market
B. allocative
C. rationing
D. transitive
Answer: B
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The Coase Theorem assumes
a. transactions are costless c. both (a) and (b) b. damages are accessible and measureable d. none of the above
In international exchange markets, a rise in interest rates in the United States will cause the demand for dollars to ________ and the supply of dollars to ________
A) increase; increase B) decrease; increase C) decrease; decrease D) increase; decrease
Elasticity measures how "sensitive" consumers are by measuring their change in ____ as the price of the product changes
a. attitude b. income c. quantity demanded d. supply e. taxes
Losers from inflation include:
A. those on a fixed income and savers. B. landlords and the government. C. borrowers and the government. D. those on a fixed income and borrowers.