If a Shortage Exists for a Good in a Free-Market

question 176

Multiple Choice

If a shortage exists for a good in a free-market economy, the

• A) price of the good will rise.
• B) price of the good will fall.
• C) government will order suppliers to increase the production of that good.
• D) government must establish a rationing system to make sure that the good is fairly distributed.

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Definitions:

Standard Deviation

A statistic that measures the dispersion or spread of a set of data points relative to its mean.

Normal Model

Another term for the normal distribution, a bell-shaped curve that represents the distribution of many types of data in statistics.

Mathematics Test

An examination designed to assess one's knowledge or proficiency in mathematics.

Normal Model

A statistical distribution that is symmetric and bell-shaped, describing how continuous data is distributed around the mean.