There was an extensive black market (illegal market) for many consumer products in the United States during World War II. A likely explanation of the black market is that:
A. the prices of goods were artificially held down by price controls.
B. black markets were legal during the war.
C. goods were not subject to price controls.
D. gasoline rationing greatly restricted civilians from driving to stores.
Answer: A
You might also like to view...
A disadvantage of ________made from precious metals is that it is very heavy and hard to transport from one place to another
A) commodity money B) fiat money C) electronic money D) paper money
Opportunity costs arise because of resource scarcity
a. True b. False
Suppose acre A is located at the market with zero transport costs of bringing its radishes to market. It costs acre B, located 20 miles away, $500 to transport its radishes to market. If demand for radishes is large enough so that both acres will be used to produce radishes,
a. the owner of acre A will earn zero location rent b. the owner of acre B will earn location rent of $500 c. the owners of acres A and B will earn combined location rents of $1,000 d. as long as one acre is located at the market, neither landowner of acre A nor B will earn location rent e. the owner of acre A will earn a location rent of $500
According to prospect theory,
A) people are concerned with wealth levels only. B) people are concerned with changes in wealth levels only. C) people never use a reference level when making their decisions. D) everybody is risk-neutral.