For a monopoly, the demand for its product is perfectly elastic at the market price
Indicate whether the statement is true or false
FALSE
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Which of the following tendencies would explain why a waiter might give a $0.50 tip on a $40 meal back to the customer instead of pocketing it?
a. anchoring b. the endowment effect c. fairness d. the gambler’s fallacy
Which of the following is FALSE?
A. The classical economists relied on market forces to create full employment. B. Keynes advocated an active government role for curing a recession. C. Keynes suggested that full employment was a "rare and short-lived occurrence". D. The classicals believed demand created its own supply.
Government payment of a per-unit subsidy for health care services causes the out-of-pocket price that consumers pay for care to be
A) less than the price that health care providers receive for providing care. B) greater than the price that health care providers receive for providing care. C) greater than the market clearing price without the subsidy. D) equal to zero.
Which of the following is NOT a condition that helps enforce a cartel agreement?
A. nearly homogeneous products B. large variation in input prices C. easily observable prices D. a small number of firms