Elasticity has which special meaning for economists?
a. b and c.
b. A ratio of percentage changes.
c. How easily prices adjust to market changes.
d. How price changes as quantities demanded change.
e. When consumers will no longer react to price changes.
b
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A negative shock in aggregate demand will likely result in no permanent change in ________
A) output B) the equilibrium inflation rate if the central bank responds by lowering interest rates C) aggregate demand, if the central bank responds by lowering interest rates D) all of the above E) none of the above
As it applies to insurance, the moral hazard problem is the tendency for:
A. those most likely to collect on insurance to buy it. B. those who buy insurance to take less precaution in avoiding the insured risk. C. sellers to price discriminate. D. sellers to restrict output and charge high prices.
If you own a condo and you decide to lease it to your cousin,
A. there is no opportunity cost of leasing the condo because you own it. B. there is no opportunity cost of leasing the condo because you collect rent from your cousin. C. there is an opportunity cost of leasing the condo because you could have chosen to live in it. D. the only cost relevant to this decision is the price you paid for the condo.
The natural rate of unemployment is the:
A. unemployment rate experienced at the depth of a depression. B. full-employment unemployment rate. C. unemployment rate experienced by the least-skilled workers in the economy. D. unemployment rate experienced by the most-skilled workers in the economy.