In which set of circumstances will prices play no part in determining how resources are allocated between alternative uses but may still have a role as a rationing mechanism? A. The government sets maximum prices for all goods above their market clearing price. B. The government sets minimum wages for all workers below the market rates of pay. C. The quantities of consumer goods produced are determined by the government. D. The total income consumers have available to spend is fixed by the government.
In which set of circumstances will prices play no part in determining how resources are allocated between alternative uses but may still have a role as a rationing mechanism? A. The government sets maximum prices for all goods above their market clearing price. B. The government sets minimum wages for all workers below the market rates of pay. C. The quantities of consumer goods produced are determined by the government. D. The total income consumers have available to spend is fixed by the government.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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In which set of circumstances will prices play no part in determining how resources are allocated between alternative uses but may still have a role as a rationing mechanism?
A. The government sets maximum prices for all goods above their market clearing price.
B. The government sets minimum wages for all workers below the market rates of pay.
C. The quantities of consumer goods produced are determined by the government.
D. The total income consumers have available to spend is fixed by the government.
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