If the government takes over the distribution of some scarce good in a time of a natural disaster and provides the good at no charge to users, what must also be done?
A) The government must produce the good itself.
B) Some rationing mechanism must be set up to determine who gets the good.
C) Everyone hurt in the natural disaster must get one of the goods.
D) nothing
E) Because we live in a democracy, the government must use majority rule as the rationing mechanism.
B
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A local pizzeria raised its price from $9 to $11 for each pizza and the sales of its pizza decreased from 150 to 100 per day. What is the price elasticity of demand in this case?
A) 1/2 B) -2 C) -1/2 D) 2
A significant problem of a dual exchange rate system is that it
(a) is difficult to administer. (b) leads companies to pursue rent-seeking behavior. (c) promotes black markets. (d) all of the above. (e) none of the above.
The London gold fixing is an example of a(n)
A) dealer market. B) Walrasian auction market. C) brokered market. D) secondary market.
The phrase "capital formation" is synonymous with
a. investment spending. b. buying shares of stock. c. creating mutual funds. d. purchasing financial assets.