The market allocates goods to individuals according to the individuals'
a. desire for the good.
b. ability to pay for the good.
c. desire and ability to pay for the good.
d. political influence.
c
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In cities with rent controls, the actual rents paid can be higher than the legal maximum. One explanation for this is
A) rent control laws are so complicated that landlords and tenants may not be aware of what the legal price is. B) landlords are allowed to charge more than the legal maximum on some apartments so long as they charge less on others. C) the legal penalty landlords face for charging more than the legal maximum rent is less than the revenue earned by charging their tenants more than the maximum rent. D) because there is a shortage of apartments, tenants often are willing to pay rents higher than the law allows.
According to your textbook, which of the following spending categories ranks the contribution to GDP in correct order (from largest to smallest for the United States)?
A.) Consumer goods, total government purchases, investment goods, exports. B.) Consumer goods, investment goods, total government purchases, exports. C.) Investment goods, consumer goods, total government purchases, exports. D.) Total government purchases, consumer goods, investment goods, exports.
When demand is elastic, an increase in price will result in a decrease in total revenue.
Answer the following statement true (T) or false (F)
The primary objective of Fed open market activity is to alter the price of bonds and their yields.
Answer the following statement true (T) or false (F)