The popular diet drug Redux was removed from the market in August 1997, after a Mayo Clinic report linked the drug to heart valve damage. a . Explain the effect of this action on membership at Gold's Gym, on enrollment at diet centers such as Weight
Watchers, where clients learn to lose weight by exercising and eating right, and on sales of treadmills and exercise bikes. b. Would you expect people to switch to other diet drugs now that Redux has been banned? How would you explain the fact that sales of the most popular, and still legal, diet drug phentermine have plummeted since the Mayo clinic report was released?
a . It should increase demand for membership at Gold's Gym, for membership at Weight Watchers, and
for treadmills and exercise bikes (substitutes for Redux).
b. Yes, you would expect demand for phentermine to increase, ceteris paribus; however, people's taste
for phentermine may have fallen after the Mayo report was issued, because of fear that phentermine,
too, may be harmful.
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Which of the following instruments are traded in a money market?
A) bank commercial loans B) commercial paper C) state and local government bonds D) residential mortgages
Which of the following statements accurately describes the current account in 2017?
a. The balance on goods and services was $-808 billion.
b. The current account balance was -$449 billion.
c. The balance of trade was $354 billion.
d. The net balance was -$449 billion.
The graphical result of a binding price ceiling is:
a. quantity demanded at the price ceiling exceeds the amount at the equilibrium price, and quantity supplied is less than the amount at the equilibrium price. b. quantity supplied at the price ceiling exceeds the amount at the equilibrium price, and quantity demanded is less than the amount at the equilibrium price. c. quantity demanded and quantity supplied at the price ceiling are equal at the equilibrium price. d. quantity demanded at the price ceiling is less than the amount at the equilibrium price, and quantity supplied is also less than the amount at the equilibrium price
The market demand function for ice cream is Qd = 10 - 2P and the market supply function for ice cream is Qs = 4P - 2, where both quantities are measured in millions of gallons per year. What is the aggregate surplus at the competitive market equilibrium?
A. $4.5 million B. $9 million C. $13.5 million D. $27 million