If a product has an elastic demand, it means that consumers are relatively insensitive to a change in the price of the product
a. True
b. False
Indicate whether the statement is true or false
False
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The simple fiscal policy multiplier occurs in the IS-LM model when ________ interest responsiveness of money demand produces a ________ LM curve
A) zero, vertical B) zero, horizontal C) infinite, vertical D) infinite, horizontal
Monopolistic competition means
A) monopolies from several countries compete in the global market. B) a large number of firms producing homogeneous products. C) a large number of firms producing differentiated products. D) few firms producing differentiated products.
Marginal revenue product is the
a. additional revenue from one additional dollar increase in price. b. change in the revenue product resulting from one additional unit of input. c. additional revenue from one additional unit of input. d. change in revenue resulting in one additional dollar in price.
Related to the Economics in Practice on page 357: Insurance companies are interested in being legally allowed to obtain the results of genetic testing before deciding on issuing insurance policies to potential buyers, which would lessen the problem of ________ in the health insurance market.
A. market signaling B. adverse selection C. moral hazard D. risk-loving