A change in the price of a good ________ its supply curve and ________ a movement along its supply curve
A) does not shift; causes
B) shifts; does not cause
C) does not shift; does not cause
D) shifts; causes
E) None of the above because the change in the price might cause either a shift in the supply curve or a movement along the supply curve depending on the size of the change.
A
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Figure 14.6 represents the market for health insurance. Suppose there are two types of consumers, low-cost consumers with $2,000 average medical expenses per year, and high-cost customers with $4,000 average medical expenses per year. If the insurance companies are pessimistic and set their price according to their pessimistic expectations:
A. the companies' pessimism is not justified. B. the market will include some low-cost and some high-cost customers. C. the market will include only low-cost customers. D. the market will include only high-cost customers.
The bowed shape of the traditional production possibilities curve reflects the
A. fact that not all resources are equally well-suited to producing all goods. B. negative side effects of economic growth. C. problems of inequality. D. costs of unemployment.
Why is the U.S. putting less emphasis on multilateral and more emphasis on bilateral trade agreements?
What will be an ideal response?
When someone takes out a mortgage loan to buy a house, the mortgage lender can take possession of the house and sell it if the borrower defaults on the loan because the house is being pledged as ________ for the loan
A) goodwill B) a liability C) insurance D) collateral