Each of the following is an example of the price mechanism at work, except when
A. wage and price controls were used during World War II to control inflation.
B. consumers curtailed driving their cars when the price of gasoline increased dramatically in 2005.
C. American farmers during World War I expanded production on previously unused land in response to higher crop prices.
D. factories of gas-guzzling automobiles shut down when the price of gasoline triples in less than three months.
A. wage and price controls were used during World War II to control inflation.
You might also like to view...
When looking at a graph of aggregate demand, which of the following is correct?
a. There are nominal variables on both the vertical and the horizontal axes. b. There are real variables on both the vertical and horizontal axes. c. The variable on the vertical axis is nominal; the variable on the horizontal axis is real d. The variable on the vertical axis is real; the variable on the horizontal axis is nominal
Which one of the following statements is TRUE?
A. The sum of wages lost by all unemployed workers gives an accurate, comprehensive estimate of the total cost of unemployment. B. The existence of unemployment places the economy at a point inside its production possibilities curve. C. The unemployment rate is the percentage of the population not working. D. To be counted as part of the labor force, an individual must be working more than 40 hours a week.