When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have
A. long queues.
B. lower excess demands.
C. greater demand.
D. higher prices.
Answer: D
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People who are more productive in market work
a. produce less for themselves b. spend more time engaged in nonmarket work c. work fewer hours in market work and enjoy more leisure d. are more likely to acquire skills and education through nonmarket work e. are attracted to market employment at lower wages
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.
Daily Output of Russia and Panama?RussiaPanamaGloves 40240Hats120180
Refer to Table 18.1. The opportunity cost of a glove in Panama is:
A. 1/8 of a hat. B. 3/4 of a hat. C. 4/3 hats. D. 8 hats.
When a household's disposable income falls to zero, what do we expect will happen?
A. The household's consumption spending also falls to zero. B. The household will maintain a positive level of saving. C. Consumption will fall to the level of autonomous consumption. D. The household will maintain its previous level of consumption.