If the government takes over the distribution of some scarce good in a time of a natural disaster and provides the good at no charge to users, what must also be done?
A) The government must produce the good itself.
B) Some rationing mechanism must be set up to determine who gets the good.
C) Everyone hurt in the natural disaster must get one of the goods.
D) nothing
E) Because we live in a democracy, the government must use majority rule as the rationing mechanism.
B
Economics
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A) does not change; does not shift B) decreases; shifts rightward C) increases; shifts rightward D) increases; shifts leftward E) decreases; shifts leftward
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How do taxes, pollution charges, and cap-and-trade work to reduce emissions?
What will be an ideal response?
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