Multiple Choice
Which of the following statements is NOT true? In the free market changes in the price of a product:
A) can act as a signal to producers
B) can provide an incentive to reallocate resources
C) can act as a rationing device
D) are set by the government
Correct Answer:
Verified
Correct Answer:
Verified
Q4: A situation where people who have taken
Q5: Which best describes consumer surplus?<br>A)the price consumers
Q6: Monopoly power in a market is likely
Q7: If, for John's current intertemporal consumption pattern
Q8: Community surplus equals:<br>A)producer surplus minus consumer surplus<br>B)profits
Q9: An insurance company can protect itself from
Q10: A public good will probably:<br>A)be expensive in
Q11: A demerit good:<br>A)is a public good<br>B)involves a
Q12: The accelerator principle states:<br>A)if an increase in
Q13: A merit good:<br>A)is a public good<br>B)involves a