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

question 291

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:

Intrusion

An inappropriate or unwanted entry or interference in a situation or personal domain.

Mnemonics

Memory aids, often using patterns of letters, ideas, or associations that facilitate the recall of information.

Reiteration

The act of repeating or restating something for emphasis or clarity, often used in communication or learning processes.

Naturalist Intelligence

The ability to recognize, categorize, and draw upon certain features of the environment.