Because of price controls in the former Soviet Union, people often waited in long lines for food and other necessities. Modern economic theory would indicate that, relative to price rationing, waiting in line is
a. just as efficient.
b. less efficient because the time spent waiting in line imposes an opportunity cost on the buyer that does not generate revenue for the seller.
c. more efficient since waiting in line reduces the transaction costs of purchasing goods.
d. more efficient since waiting in line reduces the cost of the goods to the consumer.
B
You might also like to view...
Using C to represent consumption, I to represent investment, G to represent government spending, S to represent saving, X to represent exports, and M to represent imports, aggregate expenditures can be represented by:
a. C + I + G + (X + M). b. (C ? S) + G + (X ? M). c. C + I + G + (X ? M). d. C + I + G + (X ? M) ? S.
This table shows the price-level adjustment as compared to the United States. CountryPrice-Level AdjustmentAustralia-0.50China0.25Mexico0.34United States0.00According to the table shown, if Bob is earning $30,000 in the United States and Bill is earning $40,000 in Mexico, what can be said about their standards of living?
A. Bill is earning more in real terms than Bob. B. Bob and Bill are earning the same amount in real terms. C. Bob and Bill are earning the same amount in nominal terms. D. Bob is earning more in real terms than Bill.
Which of the following countries had the highest average growth rate for per capita GDP from 2000 to 2009?
A. China. B. Burundi. C. Haiti. D. Canada.
Which of the following management techniques that were popular during the 1990s can be applied to all three components of an organization's architecture?
A. Economic Value Added B. TQM C. Benchmarking D. Just-In-Time Production and Inventory Control