Refer to Figure 3-5. At a price of $0,
A) there is a shortage of 0 units. B) there is a surplus of 8 units.
C) there is a surplus of 0 units. D) there is a shortage of 8 units.
D
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Natural gas is difficult to store. What implication does this fact have for the elasticity of supply of natural gas?
What will be an ideal response?
The financing of government spending by issuing debt
A) causes both reserves and the monetary base to rise. B) causes both reserves and the monetary base to decline. C) causes reserves to rise, but the monetary base to decline. D) has no net effect on the monetary base.
If Tom purchases a comprehensive auto insurance policy because he knows he is a reckless driver, his behavior is an example of moral hazard.
Answer the following statement true (T) or false (F)
Suppose the price change of a good causes no change in quantity demanded, we would say that the item is
A. perfectly elastic. B. perfectly inelastic. C. unitary elastic. D. infinitely elastic.