Which of the following is an example of the rationing function of price?
A. A firm attempting to lower its explicit costs
B. Government price controls
C. Switching from a Ph.D. in economics to one in finance because finance salaries are higher
D. Bill Gates purchasing the Mona Lisa for $5 billion
Answer: D
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Congress's passage of new laws significantly increasing the regulation of business would tend to ________.
A. increase per-unit production costs and shift the aggregate demand curve to the left B. increase per-unit production costs and shift the aggregate supply curve to the right C. increase per-unit production costs and shift the aggregate demand curve to the right D. increase per-unit production costs and shift the aggregate supply curve to the left
Income inequality in the United States has increased in part due to globalization. How does globalization contribute to income inequality?
A) It reduces the cost of producing goods and therefore lowers the value of labor services. B) It allows domestic firms to hire low-skilled workers anywhere in the world, putting U.S. workers in competition with foreign workers. This has caused the wages of low-skilled workers to fall relative to the wages of other workers. C) It increases the demand for a wide variety of products which in turn increases prices beyond the reach of average-income households. D) It allows producers to exploit workers and reduce the wages they are willing to pay those workers.
Household consumption as a percentage of GDP in the United States is
A) less than that in other high-income countries. B) greater than that in low-income countries. C) equal to that in middle-income countries. D) greater than the average for countries around the world.
A __________ card can store a certain value of money on the card and then be used to make purchases.
a. smart b. debit c. credit d. savings