Rationing through the price system
A) leads to an inefficient use of available resources.
B) leads to high prices.
C) works only with government interference.
D) leads to an efficient use of available resources.
D
You might also like to view...
In Singapore the government places a $5,000 tax on the buyers of new automobiles. After the purchase of a new car, a buyer must pay the government $5,000. How would the imposition of the tax on buyers be illustrated in a graph?
A) The tax will shift the demand curve to the left by $5,000. B) The tax will shift the supply curve to the left by $5,000. C) The tax will shift both the demand and supply curves to the right by $5,000. D) The tax will shift the demand curve to the right by $5,000.
Refer to Figure 21-3. Which of the following is consistent with the graph depicted above?
A) Taxes are changed so that real interest income is taxed rather than nominal interest income. B) Technological change increases the profitability of new investment. C) The government runs a budget deficit. D) An expected recession decreases the profitability of new investment. Figure 21-4