When the government prevents prices from adjusting naturally to supply and demand,
a. it equates the amount buyers want to buy with the amount sellers want to sell.
b. it adversely affects the allocation of resources.
c. it improves equality and efficiency.
d. it improves efficiency but reduces equality.
b
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Moral hazard occurs when an agreement encourages undesirable behavior
Indicate whether the statement is true or false
Which is larger: the present value of $1 two years from now or the present value of $1 one year from now? Explain
What will be an ideal response?
All of the following are characteristics of an oligopolistic market EXCEPT
A) firms must consider the actions of their rivals. B) cartels eventually form to keep prices high. C) firms have the ability to influence prices. D) firms earn lower profits than a monopoly.
It is absolutely necessary for at least one trader to have money for barter exchange to take place
a. True b. False Indicate whether the statement is true or false