Prices in a market economy perform a rationing function because they reflect
A) the demand of all buyers in the market.
B) the extent to which the goods are necessities.
C) the strength of the supply curve.
D) the relative scarcity of the goods.
Answer: D
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Refer to Scenario 14-1. M1 in this simple economy equals
A) $1,000. B) $2,000. C) $3,000. D) $8,000.
Using the utility possibilities frontier above explain three ways that this society of two individuals can be made better off without making anyone worse off if it starts at point A
What will be an ideal response?
TANF sets a lifetime cap for benefits at 10 years.
Answer the following statement true (T) or false (F)
The central idea behind the Troubled Asset Relief Program was for the Treasury to sell mortgage-backed securities to interested investors, wait for prices to increase, and then buy these securities back for a profit.
Answer the following statement true (T) or false (F)