In the short run, it is necessary to ________ a good whenever excess demand exists.
A. nonprice ration
B. discontinue distribution of
C. price allocate
D. increase production of
Answer: A
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An example of a quantity restriction is
A) the minimum wage. B) an import quota. C) rent controls. D) price supports in agriculture.
One way to solve the free-rider problem is:
A. have the government provide the good at a certain cost. B. make the good or service more excludable. C. tax those who truly value the good. D. tax everyone an equal amount for the good.
If the President and Congress agree to balance the budget during a recession, then the appropriate monetary policy is
A. no change from the current policy. B. reduce the growth of the money supply. C. constant growth of the money supply. D. increase the growth of the money supply.
Refer to the diagram for a noncollusive oligopolist. Suppose that the firm is initially in equilibrium at point E, where the equilibrium price and quantity are P and Q. If the firm's rivals will ignore any price increase but match any price reduction, then the firm's demand curve will be (moving from left to right):
A. D 1 ED 2 .
B. D 2 ED 1 .
C. D 1 ED 1 .
D. D 2 ED 2