When prices are used as a rationing device, goods that are relatively more scarce than they used to be will have
A) greater demand.
B) lower excess demands.
C) higher prices.
D) long queues.
C
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Government policies intended to decrease aggregate spending and output are called ________ policies.
A. fiscal B. monetary C. aggregate D. contractionary
At macroeconomic equilibrium
A) total taxes equal total transfers. B) total consumption equals total production. C) total investment equals total inventories. D) total spending equals total production.
Assume that a monopolist practices perfect price discrimination. The firm will produce an output rate
A) that is greater than the efficient level of output. B) that is less than the efficient level of output. C) that is equal to the efficient level of output. D) that converts consumers surplus into a deadweight loss.
If the supply of aisle seats and middle seats on an airplane is the same, but the demand for aisle seats is greater than the demand for middle seats, then the equilibrium price of aisle seats will be less than the equilibrium price of middle seats
Indicate whether the statement is true or false