The concept of "non-price rationing" means that, in general, we can deal with scarcity just as well without prices as with prices.
Answer the following statement true (T) or false (F)
False
Rationale: The concept is that, in the absence of market prices rationing scarce resources, some other form of rationing will have to emerge since something has to determine who gets what. But alternative rationing mechanisms are generally less efficient than the price mechanism.
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The high-school dropout rate typically declines during a recession because
A) more money flows into the public sector as the flow declines in the private sector. B) teachers become more readily available during a recession. C) the opportunity cost of continuing in school falls in a recession. D) the demand for education rises in a recession. E) the legal school-leaving age is a function of the unemployment rate.
Under the average-cost pricing policy, a regulated monopolist is guaranteed a normal economic profit even if there is a change in its cost of production.
Answer the following statement true (T) or false (F)
The number of firms in a monopolistically competitive market means that
A. each firm has a relatively small share of the total market since there are many firms in the industry. B. the firms will be likely to collude since there are only a few firms in the industry. C. all firms will have substantial monopoly power since there are so few firms in the industry. D. firms will have a hard time earning non-negative profits since there are many firms in the industry.
The Paradox of Value is resolved by the willingness for an individual to pay a high price for a good or service that has a high marginal utility per dollar
Indicate whether the statement is true or false