If ration coupons are used to determine who gets the products available, what happens if the government allows individuals to trade them?
What will be an ideal response?
The result is very similar to a system of price rationing. The price of the rationed good will rise to the level it would have been in a free market.
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Discuss the effects of an unexpected decrease in the inflation rate policy on unemployment in the short run. If the reduction in inflation is permanent, what happens in the long run?
What will be an ideal response?
The Kremerian model on population growth:
a. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that poverty causes population growth, and not the other way around. b. provided additional empirical support to Thomas Malthus' claim that higher population growth rate causes poverty. c. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that world population growth and poverty are completely unrelated. d. contradicts the Thomas Malthus claim that higher population growth rate causes poverty. The model suggests that world population growth is a key driver of advancing economic prosperity.