If exports are less than imports (while other planned injections equal other planned leakages), the economy
a. expands.
b. contracts.
c. has rising prices.
d. remains stable.
b. contracts.
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With respect to the insurance market, what is adverse selection?
A) Adverse selection refers to the actions people take before they purchase an insurance policy. B) Adverse selection refers to the actions people take, after they purchase an insurance policy, that make the insurance company worse off. C) Adverse selection refers to people who purchase one type of insurance policy when they would have been better off purchasing a different policy. D) Adverse selection refers to the situation in which a person purchasing an insurance policy takes advantage of knowing more about his health than the insurance company knows.
What is the profit-maximizing rule for a monopolist?
What will be an ideal response?
The monopolist's input demand curve is the
A) marginal revenue curve. B) marginal revenue product curve. C) marginal physical product curve. D) marginal factor cost.
When a unit tax of $2 is levied on a product
A) the entire $2 is paid by the consumer. B) the entire $2 is paid by the producer. C) both the consumer and producer pay $2 each. D) the consumer pays part of the $2 and the producer pays the rest.