When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have
A) greater demand.
B) lower excess demands.
C) higher prices.
D) long queues.
Answer: C
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The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant.Units of ResourceTotal Product124242460680792If the product the firm produces sells for a constant $3 per unit, the marginal product of the fourth unit of the resource is
A. $15. B. $18. C. $27. D. $45.
An investor who desired the ability to have quick and easy access to cash would prefer to hold which type of asset?
A) risky B) liquid C) tax free D) any form of bond
Individuals who face greater risks
a. are more likely to purchase insurance b. are less likely to purchase insurance c. are neither more nor less likely to purchase insurance d. are risk neutral
When Scuba, Inc, lowered the price of a tank of compressed air by 20 percent, it sold 10 percent more tankfuls. The price elasticity for compressed air is
a. 2. b. 1/2. c. 1. d. 20.