The rationing function of prices means that
A) government is responsible for setting the prices of basic foods.
B) all goods and services are produced by large firms.
C) businesses determine what goods consumers should purchase.
D) buyers and sellers synchronize their decisions through the price system.
Answer: D
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Market supply is found by
A) vertically summing the relevant part of each individual producer's marginal cost curve. B) horizontally summing the relevant part of each individual producer's marginal cost curve. C) vertically summing each individual producer's average total cost curve. D) horizontally summing each individual producer's average total cost curve.
Assume that Japan and Korea each has 2400 hours available. If each country divides its time equally between the production of cars and airplanes, then total production is
A. 64 cars and 16 airplanes. B. 80 cars and 16 airplanes. C. 128 cars and 32 airplanes. D. 40 cars and 8 airplanes.
The price of a currency will decrease when quantity demanded is less than quantity supplied
a. True b. False Indicate whether the statement is true or false
Economic theory
a. is a set of definitions, postulates, and principles assembled in a manner that helps make cause-and-effect relationships clear in economics. b. is like a guidebook in that it points out what to look for. c. provides economists with a common language and way of thinking about how the world works. d. is all of the above.