It is necessary to ration a good whenever ________ exists.
A. a surplus
B. excess supply
C. excess demand
D. market equilibrium
Answer: C
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A bank acts as _________________ between buyers and sellers.
A. an intermediary B. a negotiator C. an agent D. an interpersonal communicant
If the cross price elasticity between Goods A and B equals -1.3, then a reduction in the price of Good B will:
a. increase the demand for Good A and increase Good A's price as a result. b. increase the demand for Good A and decrease Good A's price as a result. c. decrease the demand for Good A and increase Good A's price as a result. d. decrease the demand for Good A and decrease Good A's price as a result.
Monopoly profit is not a social problem because
a. the size of the economic pie grows when monopoly profits increase. b. producers are more efficient than consumers. c. the profit represents a transfer from the consumer to the producer with no loss in total surplus. d. None of the above are correct.
Which of the following best explains why you are more likely to see a poor person than a wealthy person picking up aluminum cans to sell?
A. The opportunity cost of picking up cans is higher for wealthy people than for poor people. B. Wealthy people are more aware of diseases transmitted through litter than are poor people. C. Wealthy people are more concerned about their public image than are poor people. D. Wealthy people do not care about the environment.