Which of the following is a major disadvantage of setting the price of a good below equilibrium and using waiting in line rather than price to ration the good?
a. Compared to price rationing, waiting in line is unfair since it is easier for those with higher incomes to wait in line.
b. Waiting in line imposes a cost on the consumer; paying higher prices does not.
c. Both waiting in line and higher prices are costly to consumers, but unlike the payment of a higher price, waiting in line does not provide suppliers with an incentive to expand future output.
d. Waiting in line benefits consumers at the expense of producers.
C
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The agency that was created to protect depositors after the banking failures of 1930-1933 is the
A) Federal Reserve System. B) Federal Deposit Insurance Corporation. C) Treasury Department. D) Office of the Comptroller of the Currency.
Think of at least nine examples, three of each, that display a positive, negative, or no correlation between two economic variables. In each of the positive and negative examples, indicate whether or not you expect the correlation to be strong or weak
What will be an ideal response?
If the U.S. price level increases relative to price levels in foreign countries, _____
a. the aggregate supply curve for the U.S. will shift outward and the aggregate demand curve would remain unchanged b. the aggregate supply curve for the U.S. will shift inward and the aggregate demand curve would remain unchanged c. the aggregate demand curve for the U.S. will shift outward and the aggregate supply curve would remain unchanged d. the aggregate demand curve for the U.S. will shift inward and the aggregate supply curve would remain unchanged e. both the aggregate demand and the aggregate supply curves for the U.S. will shift outward
The gains from trade are
a. evident in economic models, but seldom observed in the real world. b. evident in the real world, but impossible to capture in economic models. c. a result of more efficient resource allocation than would be observed in the absence of trade. d. based on the principle of absolute advantage.