The intermediate range of the aggregate supply curve is the portion where:
a. The average price level and real GDP do not change with movements in aggregate demand.
b. Real GDP does not change with movements of aggregate demand, but the average price level does change.
c. The average price level does not change with movements of aggregate demand, but real GDP does.
d. The average price level and real GDP change with movements in aggregate demand.
.D
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People with a bad driving record find it difficult to buy automobile insurance because insurance companies fear that ________ may happen if they raise the premiums.
A. risk aversion B. moral hazard C. adverse selection D. none of the statements associated with this question are correct
Figure 7.4
The above figure represents the marginal utility per dollar for candy bars and oranges for Sophia. The price of each product is $0.50, and Sophia has a budget of $4.Refer to Figure 7.4. If Sophia relies solely on gut feelings, she will purchase ________ candy bars and ________ oranges to maximize utility.
A. 3; 5 B. 6; 2 C. 9; 0 D. 1; 5
A typical university football program requires alumni to join one of several booster clubs (each club gets seats in different parts of the stadium) before the person can buy season tickets. What has this got to do with consumer surplus?
What will be an ideal response?
Which one of the following would be considered to be a risk management technique used by farmers?
A. Changing the parity ratio B. Increasing product demand C. Buying more arable farm land D. Using crop revenue insurance