The government imposes a price ceiling on gasoline that is below the market price. You are asked to suggest a rationing scheme that will minimize the misallocation of resources. You suggest
A. using rationing coupons that can be resold.
B. using rationing on a first-come, first-served basis.
C. using rationing coupons that cannot be resold.
D. using rationing only on weekdays.
Answer: A
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The table above gives some of the entries in the national income and product accounts. The government sector has a ________, and the private sector has a ________
A) surplus of $50 billion; surplus of $25 billion B) deficit of $50 billion; surplus of $25 billion C) surplus of $50 billion; deficit of $25 billion D) deficit of $50 billion; deficit of $25 billion
Fast Food Terminals III After firing cashiers to install touchscreens for patrons to place orders, Taco Casa determined that their average cost per touchscreen order was $0.65 . After determining that the average compensation cost per human mediated order was $0.60 per order, they revert back to human order takers. Then why did the realized average cost per order with humans come in at $0.70?
Price discrimination exists when
A. sales are made below cost. B. each buyer is treated equally. C. a firm charges different buyers different prices for its product but the costs are the same. D. a firm charges each buyer a price of the product in proportion to its costs.
If the exchange rate between euros and dollars were 2 euros per dollar, when a French tourist buys a good valued at $80, its cost in euros would be: a. 160 euros. b. 80 euros
c. 78 euros. d. 40 euros.