When shortages or surpluses persist for any extended period of time, they
A) are a consequence of failure to allow prices to perform their rationing function.
B) are evidence of an underlying imbalance between demand and supply.
C) are evidence of goods being scarce.
D) indicate that there is no price that will clear the market in the case of some goods.
A
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By the late 1950s, dollars held by foreign central banks exceeded the official dollar value of U.S. gold reserves
Indicate whether the statement is true or false
If Jeff's wage rate rises, he decides to work more hours. From this, we can infer that
A) for Jeff, the substitution effect is greater than the income effect. B) for Jeff, the substitution effect is equal to the income effect. C) for Jeff, the substitution effect is less than the income effect. D) Jeff is confused.
Which of the following represents the best example of a price ceiling?
a. a ration coupon b. the price of caviar c. parity pricing d. rent control e. a soil bank program
If beans are inferior goods, a decrease in income will
A. cause beans to sell at a lower price. B. increase the production of beans. C. shift the demand curve for beans to the left. D. shift the demand curve for beans to the right.