As the price of a good increases, the marginal utility per dollar spent on that good will also increase
a. True
b. False
Indicate whether the statement is true or false
False
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If the exchange rate ________, the quantity of dollars demanded ________ and there is a movement up along the ________ curve for dollars
A) falls; increases; supply B) rises; increases; demand C) falls; decreases; demand D) rises; decreases; supply E) rises; decreases; demand
If insurance companies are able to gather more and better information on their customers, this will
A) help reduce the problem of adverse selection but do nothing to help with the problem of moral hazard. B) help reduce the problem of moral hazard but do nothing to help with the problem of adverse selection. C) help reduce the problems of adverse selection and moral hazard. D) do nothing to help with the problems of moral hazard and adverse selection.
With respect to labor supply, the income effect leads a person to want to work more in order to raise his or her income
Indicate whether the statement is true or false
How can diversification reduce idiosyncratic risk but not systematic risk?
What will be an ideal response?