What reasons do governments often give to justify the decision to not allow price to ration goods?
What will be an ideal response?
(1.) Price gouging is bad.
(2.) Income is unfairly distributed.
(3.) Some items are necessities and thus everyone should be able to afford them.
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A price support directly sets the
A) amount of production. B) subsidy the government must receive from producers. C) equilibrium quantity. D) lowest price for which the good may be sold. E) highest price for which the good may be sold.
Despite the improvements in information technology, productivity growth since 2006 has fallen to an even lower rate than during the period of slow growth from the mid-1970s to the mid-1990s
Indicate whether the statement is true or false
The Federal Reserve
a. issues new government bonds to finance budget deficits b. issues bonds for the U.S. Treasury c. buys and sells already-existing bonds d. increases the money supply by selling bonds e. raises and lowers tax rates and disburses money for government purchases and transfer payments
Technological improvements will:
A) leave the production possibilities curve unchanged. B) shift the production possibilities curve inward. C) shift the production possibilities curve to outward. D) necessarily lead to increased unemployment.