The government imposes a price floor on wheat that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest
A. using rationing coupons that can be resold.
B. that no rationing system will be necessary.
C. using a queuing system to compensate for the excess demand.
D. using rationing coupons that cannot be resold.
Answer: B
You might also like to view...
____ is the income actually available to the consumers that determines aggregate demand
a. Nominal income b. Net domestic product c. Income corrected for depreciation d. Disposable income
One tradeoff society faces is between efficiency and equality. Define each term. If the U.S. government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy
If you take investment by U.S. residents in other countries and you subtract investment by foreign residents in the U.S., you will find
a. gross foreign investment b. net foreign investment d. gross domestic product e. negative net foreign investment
Choice variables
A. determine the constraint B. determine the value of the objective function C. can only take on integer values D. cannot be continuous E. both c and d