Adverse selection is a problem that arises:
A. before the parties have entered into an agreement.
B. after the parties have voluntarily entered into an agreement.
C. either before or after the parties have entered into an agreement.
D. rarely in any market.
A. before the parties have entered into an agreement.
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One of the consequences of an agricultural price support program is
A) a surplus. B) more exchanges made at the price support. C) lower prices paid by consumers. D) lower taxes for taxpayers. E) a and c
Macroeconomics first developed as a new subfield of economics:
A. as a result of Adam Smith's publication of The Wealth of Nations in 1776. B. in response to the severe economic hardships of the Great Depression. C. when Adolf Hitler ordered economists to learn more about national economies. D. following the oil price increases of the 1970s.
Suppose that income taxes are increased by $600 billion. If the marginal propensity to consume is 0.75 and the spending multiplier is 4, by how much will the aggregate demand curve shift at a given price level?
A) $2,400 billion B) $1,800 billion C) $600 billion D) $450 billion
Street entertainers face the free-rider problem when they perform because of the:
A. Law of Demand B. Diminishing marginal utility C. Nonexcludability characteristic D. Rivalry characteristic