If ration coupons are used to determine who gets the products available, what happens if the government allows individuals to trade them?
What will be an ideal response?
The result is very similar to a system of price rationing. The price of the rationed good will rise to the level it would have been in a free market.
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Which of the following is false?
a. If people can anticipate the plans of policy makers and alter their behavior quickly, their behavior could neutralize the intended impact of government action on real GDP. b. The theory of rational expectations leads to optimistic conclusions regarding macroeconomic policy's ability to achieve its intended economic goals. c. Rational expectation economists believe that wages and prices are flexible, and that workers and consumers incorporate the likely consequences of government policy changes quickly into their expectations. d. Catching consumers and businessmen off-guard with macroeconomic policy changes gets harder the more you try to do it.
A very large number of small sellers who sell identical products imply
A) a multitude of vastly different selling prices. B) a downward sloping demand curve for each seller's product. C) the inability of one seller to influence the price. D) chaos in the market.
The value of a loan of $500 after a year at 3 percent interest is:
A. $509. B. $515. C. $565. D. $1,500.
It is better to protect an infant industry with _______ than ________.
a. a voluntary export restraint; a quota b. a voluntary export restraint; a tariff c. a tariff; a quota d. a quota; a tariff