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:

Wireless

Refers to communications systems and devices that transmit data over distances without the use of wires or cables.

NIC

Stands for Network Interface Card; a hardware component that connects a computer to a network.

LAN

Local Area Network, a computer network that interconnects computers within a limited area such as a residence, school, laboratory, or office building.

ERP

Enterprise Resource Planning, a type of software that organizations use to manage daily business activities like accounting, procurement, project management, and manufacturing.