A system of allocating scarce goods and services using some criteria other than price:

When the price of oil rises unexpectedly, the equilibrium price level ________ and the unemployment rate ________ in the short run

A) rises; falls B) falls; rises C) falls; falls D) rises; rises

The law of increasing opportunity cost is based on the idea that

a. wages tend to increase with the level of employment b. interest rates tend to rise with increasing inflation c. labor costs for a typical firm are a large and growing proportion of total cost d. most resources are better suited to producing some goods than others e. the less of something we produce, the greater is the opportunity cost of producing still more