It may be necessary to ration a good whenever ___________ exists.
A. a surplus
B. excess demand
C. excess supply
D. None of these choices are correct.
B. excess demand
You might also like to view...
Which of the following is true of tariffs?
A) Tariffs are special taxes levied on imports. B) Tariffs reduce the volume of exports. C) Tariffs decrease the prices of imports. D) Tariffs encourage international trade.
If a natural monopoly is told to set price equal to average cost, then the firm
A) is not able to set marginal revenue equal to marginal cost. B) automatically also sets price equal to marginal cost. C) will make a substantial economic profit. D) will incur an economic loss. E) sets a price that is lower than its marginal cost.
When an exchange rate is determined strictly by the demands and supplies for a nation's currency, it is called
a. fixed b. arbitrage c. floating d. unilateral e. balance of payments
If the Fed buys government securities from depository institutions, the effect will be to
A. reduce loans and reduce the money supply. B. reduce loans and increase the money supply. C. increase loans and reduce the money supply. D. increase loans and increase the money supply.