Refer to the graphs below. Which graph shows a change in the price of X, but no changes in the price of Y and in the buyer's budget?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
B. Graph B
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An indication that Insurance companies anticipate adverse selection is
a. they require a deductible b. they do not classify clients into different risk types according to their claim history c. they do not classify clients into different risk types according to pre-existing conditions d. they do not require a co-payment
Surpluses cause prices to rise while shortages cause prices to fall
a. True b. False Indicate whether the statement is true or false
If the spending multiplier is equal to 5, then a $1 initial increase in investment spending will lead to a:
a. 5 percent decrease in real GDP. b. 5 percent increase in real GDP. c. $5 decrease in real GDP. d. $5 increase in real GDP. e. 0.05 percent increase in real GDP.
If the model of price-taking firms is so unrealistic and restrictive, why study it?