Refer to Figure 9.7. Without counting any government payments received by firms, as a result of this policy the producer surplus earned on the units sold in the market
A) rose by $15,000.
B) rose by $20,000.
C) rose by $40,000.
D) fell by $5,000.
E) fell by $45,000.
A
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Adverse selection is the tendency for people who accept contracts to be those who
A) buy goods and then regret it later. B) buy goods for more than their own reservation price. C) plan to use private information to the disadvantage of the less well-informed party. D) engage in a number of searches larger than that specified in the contract.
The ________ the reserve ratio, the ________ the money multiplier
A) larger; larger B) smaller; smaller C) smaller; larger D) None of the above are correct.
Social Security was not designed to provide insurance against outliving one's retirement.
A. True B. False C. Uncertain
If a good has a price elasticity of demand coefficient less than one, then:
a. this good has an elastic demand. b. this good has an inelastic demand. c. a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded. d. the demand curve will be vertical.