One way to allocate the scarce good created from an effective price ceiling is to:

A. give them to the friends and family of the producers.
B. offer it on a first-come, first-served basis.
C. ration a certain quantity per household.
D. All of these are examples of allocating using non-price methods.


Answer: D

Economics

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a) By government. b) By markets. c) By rules. d) By regulations.

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Suppose a large country experiences economic growth which results in an increased willingness to trade. The country's terms of trade will ________ because the increase in demand for imports will cause the price of its exports to ________ relative to the price it has to pay for its imports.

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