Chapter 6 Lists

Question 1

Name the 4 best ways to allocate resources

Answer 1

1) Neutral
2) Flexible
3) Familiar
4) Efficient

Question 2

Name the 3 things that entitles a holder to a certain amount of a product during rationing

Answer 2

1) Ration coupon
2) A ticket
3) Receipt

Question 3

List the 4 problems with rationing

Answer 3

1) perceived fairness
2) Administrative expense (someone has to pay for printing, distribution, costs of coupons and salaries of the workers)
3) Distorted incentives
4) Abuse and misuse

Question 4

What are the 7 main factors that affect prices

Answer 4

1) Product Cost
2) Quality
3) Service
4) Competition
5) Demand
6) Taxes
7) Uniqueness

Question 5

List the 4 pro-arguments to raising minimum wage

Answer 5

1) It increases the buying power of the poorest worker
2) It raises the standard of living for the poorest worker
3) It motivates workers to work harder
4) It helps decrease spending on Social Welfare Programs

Question 6

List 4 Anti-Arguments for the raise of minimum wage

Answer 6

1) It causes fewer workers to be hired which increases unemployment
2) It hurts small businesses
3) It Discourages poor workers from getting job skills and better employment opportunities
4) It forces businesses to raise prices