Why is there a shortage of donated human organs that can be used for transplants?
Please provide the best answer for the statement.
The basic reason is that no market exists for human organs. The demand curve for human organs would be similar to other demand curves in that a greater quantity would be demanded at low prices than at higher prices. Donated organs that are rationed by a waiting list have a zero price. The existing supply is perfectly inelastic and is the fixed quantity offered by willing donors. There is a shortage of human organs because at a zero price the quantity demanded exceeds the quantity supplied.
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When considering different tax levels, the revenue-maximizing point will be reached more:
A. slowly when demand is more elastic. B. quickly when demand is more elastic. C. quickly when demand is less elastic. D. quickly if demand is unit elastic.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Speculative attacks against a currency are caused by fears of:
A. monetary policy tightening. B. exchange rate revaluations. C. exchange rate devaluations. D. balance-of-payments surpluses.
The recovery phase of the business cycle is always followed by the _____ phase.
Fill in the blank(s) with the appropriate word(s).