All of the following are characteristics of allocation by rationing EXCEPT
a. lack of fairness.
b. high administrative cost.
c. efficiency.
d. diminished incentive for workers.
Ans: a. lack of fairness.
You might also like to view...
Assume a customer of natural gas is negotiating with his supplier over the telephone. At the time prices of all the supplier's competitors are precisely the same
The customer tells the supplier that if he raises his price even one penny he will walk away. What does the perceived demand curve for natural gas look like for this customer? Why?
The substitution effect measures
A) the responses of quantities to changes in the relative prices of goods. B) the responses of relative prices to changes in the demand for goods. C) how two goods can be used for the same purpose. D) the responses of quantities to changes in the relative qualities of goods.