During World War II, price controls were necessitated as shortages emerged in consumer markets. This required
(a) the federal government to ration goods through tickets.
(b) the federal distribution of rationing points.
(c) a forced reduction in private consumption.
(d) all of the above actions.
(d)
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
Which of the following will cause an increase in the quantity demanded of ice cream at an ice cream store?
a. The onset of summer brings about an increase in the temperature. b. The price of frozen yogurt that is sold at the store is reduced by 5 percent. c. A new ice cream flavor is introduced at the store. d. The store introduces a limited period offer of 20 percent off on the price of ice cream. e. The income of the store's consumers increases.
Price elasticity of supply is always
A) positive because of the law of supply. B) negative because of the law of supply. C) positive because of diminishing marginal utility. D) negative because percentages can only be negative.
(Consider This) According to economists Krueger and Perri:
A. despite the fact that income inequality has increased in recent decades, consumption inequality has remained relatively constant. B. increases in income inequality over recent decades understate the growth in consumption inequality. C. both income and consumption inequality have increased at approximately the same rate over recent decades. D. both income and consumption are more equally distributed than they were 30 years ago.