Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 4, Problem 1QP
To determine
The need for a rationing device.
Expert Solution & Answer
Explanation of Solution
The given statement is false. The need for a rationing device arises due to the scarcity of resources. We know that the human wants are unlimited though we have only limited resources. Rationing is an effective measure that allocates the limited resources to the people who want to consume them. Rationing also acts as an incentive for the producers to increase their production as they are profit driven. Without an efficient rationing device, the resource cannot be distributed and hence the given statement is not correct.
Economics Concept Introduction
Scarcity: Scarcity refers to the limited availability of resources than the required level.
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Students have asked these similar questions
HW Ch5
Calculate the daily total revenue when the market price is $180, $160, $140, $120, $100, $80, $60, and $40 per bippitybop. Then, use the green
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China is a leader in international trade, has one of the highest GDPs, and currently holds the largest foreign exchange reserve in the world.
Is it fair for China to fix its currency by undervaluing it on the market?
How does keeping its currency undervalued give it a favorable position in international trade?
What about from the viewpoints of international companies and consumers?
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