Which of the following statements is NOT true about the rationing of goods?
A) Goods can only be rationed by price.
B) Goods can be rationed on a first come first serve basis.
C) Goods can be rationed by random.
D) Goods can be rationed by the use of coupons.
Ques. 2Which of the following will NOT lead to a decrease in demand for a normal good?
A) an increase in income
B) an increase in the price of an input
C) a decrease in the price of a complement good
D) an increase in the number of consumers
Ques. 3In the above figure, points u, v, y, and z show
A) an inefficient allocation of society's scarce resources.
B) possible combinations of televisions and personal computers.
C) a constant trade-off between televisions and personal computers.
D) that society prefers more televisions than computers.
Ques. 4If economists are making the assumption that business people try to maximize profits, the best way to determine whether this assumption is useful or not is to
A) see whether it generates accurate predictions about the choices of business people.
B) ask business people whether it is true or not.
C) find out whether U.S. businesses are more profitable than European businesses.
D) take a survey of people and see if they agree with this assumption.
Ques. 5One of the problems with the definition of economic growth is that
A) it overstates economic growth because it does not account for leisure time.
B) it does not account for the distribution of income.
C) it overstates economic growth because it does not account for the reduction in work time.
D) it understates economic growth because it does not account for the reduction in work time.
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