A System of Rationing

question 82

Multiple Choice

A system of rationing:

• A) benefits those with higher incomes, who can outbid those with lower incomes to obtain goods that are in scarce supply.
• B) is a system where everyone has equal chance to purchase a rationed good.
• C) is a system of allocation commonly found in other countries, but has never been imposed in the United States.
• D) hurts those who are looking to obtain at least a fraction of the goods in question.

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Definitions:

Cash Account

An account that records all transactions involving the cash of a company, including receipts and payments.

Raw Materials Inventory

Items and substances in stock that will be used in the manufacturing process to create goods and products.

Net Operating Income

A company's revenue minus its operating expenses, excluding taxes and interest.

Work in Process Inventory

Items that are in the process of being manufactured but are not yet complete.