When economists refer to price as a rationing mechanism, they mean that
a. the government can establish a rationing program by setting prices
b. price weeds from the market those who want the good, but can't afford it
c. most markets have chronic problems with excess demand so rationing is necessary
d. suppliers ration goods by setting a price demanders can afford
e. demanders ration their incomes by choosing only low-priced goods
b. price weeds from the market those who want the good, but can't afford it
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Hyperinflation
A) occurs in the United States during each business cycle. B) has never occurred in the United States. C) is a period of time when inflation exceeds 20 percent per year. D) happens in all countries at some time during their business cycle. E) occurs only in theory, never in reality.
You turn to the Treasury bond market page of a newspaper and look under the column headed "Ask" and see that it says, "128:16" this indicates that
A. the price that the buyer is willing to pay for this bond is $128.16. B. the price that the buyer is willing to pay for this bond is $1,280.16. C. the price that the seller is willing to sell this bond for is $1,285. D. the price that the seller is willing to sell this bond for is $128.16.
John Maynard Keynes described periods of irrational pessimism and optimism that affect the investment behavior of firms as animal spirits. When considering the investment behavior of firms, animal spirits can be thought of as changes in the
A) actual marginal product of capital. B) capital stock. C) expected marginal product of capital. D) user cost of capital.
If the popular television show The Bachelor is shown on pay-per-view television every Monday at 9pm, then the demand curve for each episode is given below.
Given that the marginal cost of showing an episode to an additional household is $0:
A. the pay-per-view channel's economic profit will be zero. B. fewer than the socially optimal number of households will watch each episode. C. more than the socially optimal number of households will watch each episode D. the pay-per-view channel will maximize its profit by charging $0 for each episode.