Summarize examples of how a change in demand for one good can affect demand for a related good
What will be an ideal response?
Exapmle:When we consider the demand for skis, ski boots are considered a complement. An increase in the price of ski boots will cause people to buy fewer boots. Because skis are useless without boots, the demand for skis will fall at all prices—after all, why buy new skis if you can't afford the ski boots you need?
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What makes the supply of U.S. dollars change?
What will be an ideal response?
What would lead an economist to conclude that Theory A is superior to Theory B?
A) Theory A predicts real-world events better than does Theory B. B) The assumptions underlying Theory A are more realistic than are the assumptions underlying Theory B. C) Theory A explains how people think, whereas Theory B only explains what they do. D) Theory A is based on the assumption that an individual typically cannot determine what is in his or her own best interest, whereas Theory B assumes that each person knows what is in his or her own best interest and acts accordingly.
What does a perfectly elastic demand curve look like? A perfectly inelastic demand curve? Explain
What will be an ideal response?
Which of the following statements is true?
A. Most Medicaid beneficiaries are in HMO plans. B. Most Medicare Advantage beneficiaries are in HMO plans. C. Only about a quarter of employer-sponsored plan beneficiaries are in HMO plans. D. All of the above