If the supply curve is a vertical line, it means that:
A. regardless of price, the quantity supplied is a constant amount.
B. regardless of quantity, the price is a constant amount.
C. the good is inferior.
D. the good has many substitutes.
Answer: A
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Refer to Figure 19-8. The equilibrium exchange rate is at A, $1.25/euro. Suppose the European Central Bank pegs its currency at $1.00/euro. At the pegged exchange rate,
A) there is a surplus of euros equal to 700 million. B) there is a shortage of euros equal to 500 million. C) there is a shortage of euros equal to 200 million. D) there is a surplus of euros equal to 300 million.
To control moral hazard and the increased spending that accompanies it, managed care providers include _______ in contracts with providers
a. clinical rules b. capitation c. risk sharing d. all of the above
In a congressional debate about agricultural price supports, senators, members of congress, and other experts made the following four statements. Which of these is a normative statement?
a. "Price supports are important because America should preserve the small family farm." b. "Without price supports, the price of wheat and corn will fall by over twenty percent." c. "The decline in commodity prices caused by the removal of price supports will result in fewer, larger farms." d. "The decline in commodity prices caused by the removal of price supports will reduce the number of tractors sold in the United States."
During recessions, even with no changes in policy, the deficit tends to ______ because _____________
Fill in the blank(s) with correct word