Why does an economy need a rationing mechanism?
A. because it preserves the power of the wealthy
B. because it eliminates poverty
C. because of scarcity
D. All of these are correct.
Answer: C
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The financial statements of firms generally are audited by
A) employees of the firm being audited. B) employees of private accounting firms. C) the board of directors of the corporation being audited. D) employees of the federal government.
Most economists support open trade because it increase our choices as consumers, lowers costs for producers, increases competition and innovation, and leads to greater diffusion of technological change
Indicate whether the statement is true or false
Explain how changes in relative real interest rates affect the value of a nation’s currency.
What will be an ideal response?
The Equivalent Variation resulting from a quota is best defined as
A) the amount a consumer would pay to have the quota removed. B) the amount the consumer would need to voluntarily accept the quota. C) the amount a consumer would pay for the quantity specified by the quota. D) the loss in utility resulting from the quota.