Other things being equal, when the money price of a good increases, its relative price
A) stays the same.
B) increases.
C) decreases.
D) falls to zero.
Answer: B
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One lesson that American policy makers can learn from the health care systems of other counties is
a. people must be willing to accept long waiting lists for expensive services. b. a government-run system ensures equal access across socio-economic groups. c. the importance of having a safety valve. d. the mix between general practitioners and specialists is of little importance. e. private insurance cannot complement government insurance.
A demand schedule is a table showing how the ____ of some product during a specified period of time changes as ____ changes, holding all other determinants of quantity demanded constant
a. demand; the price of its complement b. demand; the quantity supplied c. quantity demanded; the price of its substitute d. quantity demanded; the price of that product
What will cause the equilibrium point to move from E1 to E2?
a. a downward movement, or decrease, in price from P1 to P2
b. an upward movement, or increase, in price from P2 to P1
c. a leftward movement, or decrease, in quantity from Q2 to Q1
d. a rightward movement, or increase, in quantity from 0 to Q2
Which of the following best describes the effect of a negative incentive?
a. a decrease in an activity b. an increase in a behavior c. no change in activity d. an unpredictable response